Delivers Very Strong Results, Raising Full-Year Guidance
SANTA CLARA, Calif., August 17, 2021
- Revenue of $1.59 billion represents an increase of 26% reported growth year-over-year, up 21% on a core(1) basis.
- GAAP diluted earnings per share (EPS) of 86 cents, up 34%.
- Non-GAAP(2) diluted EPS of $1.10 per share, up 41%.
- Full-year guidance raised with revenue now expected to be in the range of $6.29 billion to $6.32 billion and non-GAAP(3) EPS of $4.28 to $4.31.
- Fourth-quarter revenue expected to be in the range of $1.63 billion to $1.66 billion with non-GAAP(3) EPS of $1.15 to $1.18.
Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.59 billion for the third quarter ended July 31, 2021, an increase of 26% compared to the third quarter of 2020 and up 21% on a core(1) basis.
Third-quarter GAAP net income was $264 million, or 86 cents per share. This compares with $199 million, or 64 cents per share, in the third quarter of fiscal year 2020. Non-GAAP(2) net income was $337 million, or $1.10 per share compared with $243 million, or 78 cents per share, during the third quarter a year ago.
“The positive momentum in Agilent’s business continued in the third quarter across all markets and regions as our performance exceeded our expectations,” said Mike McMullen, Agilent president and CEO. “Our focus on high-growth businesses and strong execution has again led to another quarter of excellent results and we expect this momentum to continue as we close out our fiscal year.”
Life Sciences and Applied Markets Group
Third-quarter revenue of $680 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) was up 22% year-over-year and 18% on a core(1) basis. LSAG’s operating margin was 25.0%.
Agilent CrossLab Group
Third-quarter revenue of $560 million from the Agilent CrossLab Group (ACG) increased 21% year-over-year and was up 15% on a core(1) basis. ACG’s operating margin was 29.3%.
Diagnostics and Genomics Group
Third-quarter revenue of $346 million from Agilent’s Diagnostics and Genomics Group (DGG) increased 44% year-over-year and was up 37% on a core(1) basis. DGG’s operating margin was 22.6%.
Full-Year and Fourth-Quarter Outlook
Agilent has increased its outlook and now expects revenue in the range of $6.29 billion to $6.32 billion for fiscal year 2021. Fiscal year 2021 non-GAAP(3) earnings guidance has also increased to a range of $4.28 to $4.31 per share.
Agilent expects fourth-quarter 2021 revenue in the range of $1.63 billion to $1.66 billion, with non-GAAP(3) earnings expected to be in the range of $1.15 to $1.18 per share.
The outlook is based on currency-exchange rates as of July 31, 2021.
Agilent’s management will present additional details regarding the company’s third-quarter 2021 financial results on a conference call with investors today at 1:30 p.m. PST. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the “Q3 2021 Agilent Technologies Inc. Earnings Conference Call” link in the “News & Events — Events” portion of the Investor Relations section of the Agilent website. The webcast will remain on the company site for 90 days.
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent’s growth prospects, business, financial results, revenue, and non-GAAP earnings guidance for the fourth quarter and full fiscal year 2021 and future amortization of intangibles. These forward-looking statements involve risks and uncertainties that could cause Agilent’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent’s customers’ businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing, and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; the adverse impacts of and risks posed by the COVID-19 pandemic and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended April 30, 2021. Forward-looking statements are based on the beliefs and assumptions of Agilent’s management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.
(1) Core revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. A reconciliation between Q3 FY21 GAAP revenue and core revenue is set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure.
(2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of non-cash asset impairments, intangibles amortization, transformational initiatives, acquisition and integration costs, loss on extinguishment of debt and business exit and divestiture costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure.
(3) Non-GAAP earnings per share as projected for Q4 FY21 and full fiscal year 2021 exclude primarily the impacts of non-cash intangibles amortization, transformational initiatives and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $51 million per quarter.