Agilent Technologies Inc (A) Reports Mixed Fiscal Year 2023 Results Amid Industry Challenges
Fourth-quarter revenue declined by 8.7% reported and 9.7% core year-over-year.
GAAP EPS increased by 32% in Q4, while non-GAAP EPS decreased by 10% compared to the same period last year.
Full fiscal year 2023 revenue remained flat, with a slight core increase of 1.5% year-over-year.
Agilent's fiscal year 2024 outlook anticipates a slow recovery with revenue expected to range between $6.71 billion and $6.81 billion.
On November 20, 2023, Agilent Technologies Inc (NYSE:A) released its 8-K filing, detailing the financial results for the fourth quarter and full fiscal year 2023. The company reported a fourth-quarter revenue of $1.69 billion, which represents an 8.7% decrease on a reported basis and a 9.7% decrease on a core basis from the fourth quarter of 2022. Despite the revenue decline, Agilent's GAAP net income rose to $475 million, with earnings per share (EPS) climbing to $1.62, a 32% increase from the previous year's quarter. However, non-GAAP net income saw a decrease, with EPS dropping by 10% to $1.38.
Fiscal Year 2023 Performance Overview
For the full fiscal year 2023, Agilent's revenue remained flat at $6.83 billion on a reported basis but showed a modest core increase of 1.5% year-over-year. The GAAP net income for the year was $1.240 billion, with EPS remaining steady at $4.19. The non-GAAP net income for the year was $1.609 billion, with a 4% increase in EPS to $5.44.
Segment Performance and Outlook
The Life Sciences and Applied Markets Group (LSAG) experienced a significant revenue decline of 17% reported and 18% core year-over-year in Q4, with a full-year revenue decrease of 4% reported and 2% core. Conversely, the Agilent CrossLab Group (ACG) saw a 6% reported and 4% core increase in Q4 revenue, with an 8% reported and 10% core growth for the full year. The Diagnostics and Genomics Group (DGG) reported a slight 1% increase in revenue on a reported basis and remained flat on a core basis for both the quarter and the full year.
Looking ahead to fiscal year 2024, Agilent expects revenue to be in the range of $6.71 billion to $6.81 billion, which would represent a slight decline to a marginal increase on a reported basis and a core basis, respectively. The non-GAAP EPS is projected to be between $5.44 and $5.55. For the fiscal first quarter, revenue is anticipated to decline by 11.4% to 8.6% reported and 11.3% to 8.5% core, with non-GAAP earnings guidance expected to be in the range of $1.20 to $1.23 per share.
Financial Statements Highlights
Agilent's balance sheet as of October 31, 2023, shows an increase in total assets to $10.763 billion, up from $10.532 billion the previous year. The company's cash and cash equivalents also rose to $1.590 billion, compared to $1.053 billion in 2022. The condensed consolidated statement of cash flows indicates a net cash provided by operating activities of $1.772 billion for the year ended October 31, 2023, a notable increase from $1.312 billion in the previous year.
Management Commentary
"The Agilent team continued its strong execution in Q4 and delivered leveraged earnings in 2023 during a challenging year for the industry," said President and CEO Mike McMullen. "As we look ahead to 2024, we anticipate a slow but steady recovery. We have high confidence in the markets in which we have invested, the strength and resilience of our team, and the benefits of our build and buy growth strategy. Agilent is well-positioned for long-term growth."
Agilent's financial performance in the fourth quarter and full fiscal year 2023 reflects the company's resilience in a challenging market. While certain segments experienced declines, others showed growth, and the company's overall financial health remains robust. Investors and stakeholders can look forward to a cautious but optimistic outlook for the coming fiscal year.
Explore the complete 8-K earnings release (here) from Agilent Technologies Inc for further details.
This article first appeared on GuruFocus.
