Agilent (A) Q1 Earnings & Revenues Beat Estimates, Dip Y/Y

Core Insights - Agilent Technologies reported first-quarter fiscal 2024 earnings of $1.29 per share, exceeding the Zacks Consensus Estimate by 6.6%, but down 6% year-over-year [1] - Revenues reached $1.66 billion, surpassing the Zacks Consensus Estimate of $1.57 billion, yet declined 5.6% on a reported basis and 6.4% on a core basis compared to the previous year [1] - The revenue decline was attributed to widespread weakness across all end markets, particularly in Pharma, Chemistry & Advanced Materials, Food, and Diagnostics and Clinical markets, along with weak momentum in China [1] Segmental Performance - Life Sciences & Applied Markets Group (LSAG) generated $846 million, accounting for 51% of total revenues, down 10% reported and 11% core year-over-year, missing the consensus estimate of $849 million [2] - Agilent Cross Lab Group (ACG) reported revenues of $405 million, representing 24% of total revenues, exceeding the consensus mark of $385 million, with a 6% increase reported and 5% core year-over-year [3] - Diagnostics and Genomics Group (DGG) revenues decreased 6% year-over-year to $407 million, accounting for 25% of total revenues, but surpassed the consensus estimate of $332 million [3] Operating Results - Gross margin in the LSAG segment contracted by 130 basis points to 60.2%, while ACG's gross margin expanded by 200 basis points to 50.5%, and DGG's gross margin increased by 20 basis points to 52.8% [4] - Research and development costs rose to $128 million, up 4.1% year-over-year, while selling, general and administrative expenses decreased to $396 million, down 5.5% year-over-year [4] - The overall operating margin for the quarter was 23.2%, contracting 110 basis points from the previous year, with LSAG's operating margin down 390 basis points to 27.9% [4] Balance Sheet & Cash Flow - As of January 31, 2024, Agilent's cash and cash equivalents increased to $1.75 billion from $1.59 billion as of October 31, 2023 [5] - Accounts receivables were $1.295 billion, slightly up from $1.291 billion at the end of the previous quarter [6] - Long-term debt decreased to $2.555 billion from $2.735 billion in the prior quarter, while cash generated from operations was $485 million, down from $516 million [6] Guidance - For the second quarter of fiscal 2024, management anticipates revenues between $1.560 billion and $1.590 billion, indicating a decline of 9.1-7.4% reported and 8.4-6.7% core year-over-year [7] - Non-GAAP earnings per share are projected to be between $1.17 and $1.20, with the consensus estimate at $1.27 [7] - For fiscal 2024, expected revenues are between $6.710 billion and $6.810 billion, suggesting a decline of 1.8-0.3% reported year-over-year, with non-GAAP earnings per share projected at $5.44-$5.55 [7]