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:
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.
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.
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%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email firstname.lastname@example.org. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street