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Post Earnings Coverage as Agilent Revenue Gained 4%, Adjusted EPS Advanced 15%

Upcoming AWS Coverage on Quintiles IMS Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 21, 2017 / Active Wall St. announces its post-earnings coverage on Agilent Technologies, Inc. (NYSE: A). The Company announced its first quarter fiscal 2017 financial results on February 14, 2017. The scientific instrument maker reported eighth consecutive quarter of improving profitability and also raised its core revenue guidance for the year. Register with us now for your free membership at:


One of Agilent Technologies' competitors within the Medical Laboratories & Research space, Quintiles IMS Holdings, Inc. (NYSE: Q), reported its Q4 and full-year 2016 financial results and issued its 2017 guidance on Tuesday, February 14, 2017. AWS will be initiating a research report on Quintiles IMS Holdings in the coming days.

Today, AWS is promoting its earnings coverage on A; touching on Q. Get our free coverage by signing up to:


Earnings Reviewed

For the period ended January 31, 2017, Agilent reported revenue of $1.07 billion, up 3.8% or 4.8% on core basis compared to revenue of $1.03 billion in Q1 FY16. The Company's revenue numbers surpassed analysts' consensus of $1.04 billion.

For Q1 FY17, Agilent reported GAAP net income of $168 million, or $0.52 per share, compared to GAAP net income of $121 million, or $0.36 per share, for Q1 FY16. During the reported quarter, Agilent had intangible amortization of $31 million, acquisition and integration costs of $16 million, transformation costs of $2 million, and $2 million of other costs. Excluding these items, a pension settlement gain of $32 million and a tax benefit of $15 million, Agilent reported Q1 FY17 non-GAAP net income of $172 million, or $0.53 per share, exceeding Wall Street's expectations for earnings of $0.49 per share.

Mike McMullen, Agilent's President and CEO stated in regards to the Company's results:

"Our strong revenue results were driven by a return to growth in our Chemical & Energy business and higher-than-expected China growth. Overall, we are confident in the Company's prospects, and we are raising our full-year core revenue growth expectations."

For Q1 FY17, Agilent reported adjusted operating margin of 21.2%, up 100 basis points from Q1 FY16, and operating cash flow of $116 million, $5 million higher than Q1 of last year.

During Q1 FY17, Agilent paid $42 million in dividends and repurchased 2.5 million shares for $111 million in the reported quarter. The Company closed on $70 million Multiplicom acquisition in January 2017.

Segment Results

For Q1 FY17, the Company's revenue of $540 million from Agilent's Life Sciences and Applied Markets Group (LSAG) grew 3% on y-o-y basis, or 4% on a core basis, with strength in Pharma, food, chemical, and energy. LSAG's operating margin for the reported quarter was 23.4%.

The Company's Agilent CrossLab Group (ACG) revenue grew 6% y-o-y, or 7% on a core basis, to $363 million. Both services and consumables experienced healthy growth across all geographies. ACG's operating margin for the reported quarter was 20.3%.

During Q1 FY17, Agilent's Diagnostics and Genomics Group (DGG) generated revenue of $164 million, up 4% on y-o-y and core basis, led by strength in Dako-branded products and nucleic acid solutions. The segment's operating margin totaled 14.3% for the reported quarter.

On a geographical basis, Agilent reported delivering low double digit growth in Q1FY17 in China, above the Company's expectations. The Americas reported growth in mid-single digits, with strength in the United States. Europe and Japan remained flat.


For FY17, Agilent expects revenue of $4.33 billion to $4.35 billion and non-GAAP earnings of $2.10 to $2.16 per share. The Company is raising the core revenue growth guidance of 4.0% to 4.5% provided in November by 25 basis points, or $11 million. The new core revenue growth guidance is therefore 4.25% to 4.75%. However, Agilent noted that the strengthening of the US dollar since its November guidance is expected to have a negative impact of about $36 million on full-year reported revenues. The Company's FY17 guidance of $825 million operating cash flow, $200 million CapEx, and buyback of $430 million for the year remained unchanged.

For Q2 FY17, Agilent expects revenue in the range of $1.04 billion to $1.06 billion, where the midpoint corresponds to a core revenue growth of 3.5%. The Company's non-GAAP earnings are expected to be in the range of $0.47 to $0.49 per share for Q2 FY17, a 9% y-o-y increase at midpoint.

Stock Performance

At the closing bell, on Friday, February 17, 2017, Agilent Technologies' stock climbed 1.55%, ending the trading session at $51.63. A total volume of 2.20 million shares were traded at the end of the day, which was higher than the 3-month average volume of 2.05 million shares. In the last three months and previous twelve months, shares of the Company have advanced 12.13% and 39.41%, respectively. Moreover, the stock surged 13.32% since the start of the year. The Company's shares are trading at a PE ratio of 33.22 and have a dividend yield of 1.03%.

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SOURCE: Active Wall Street