Technology Stocks

Earnings Spotlight on Agilent Technologies Inc (NYSE:A)

Agilent Technologies Inc (NYSE:A) recently reported its fiscal Q4 numbers, including revenues of $1.29 billion, which was up 9% year-over-year. Q4 GAAP net income was $195 million, or $0.61 per share. Last year’s fourth-quarter GAAP net income was $177 million, or $0.54 per share.

“The Agilent team delivered an outstanding quarter to wrap up the fiscal year with revenues and earnings per share ahead of expectations,” said Mike McMullen, Agilent CEO and President. “Our performance this quarter caps off an excellent 2018 as we achieved our highest annual core growth rate and profitability since becoming a stand-alone life sciences company in 2014.”

Agilent Technologies Inc (NYSE:A) frames itself as a company that provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide.

It operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.

The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; microfluidics-based automated electrophoresis products; cell analysis plate-based assays; laboratory software and informatics systems; laboratory automation; dissolution testing; vacuum pumps; and measurement technologies.

The Diagnostics and Genomics segment provides reagents, instruments, software, and consumables; arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, and gene expression profiling, as well as sequencing target enrichment services; and equipment focused on production of synthesized oligonucleotides for use as active pharmaceutical ingredients.

The Agilent CrossLab segment offers GC and LC columns, sample preparation products, custom chemistries, and various laboratory instrument supplies; and startup, operational, training, and compliance support, as well as asset management and consultation services. The company markets its products through direct sales, electronic commerce, resellers, manufacturers’ representatives, and distributors. It has collaboration with the University of Southern California Michelson Center for Convergent Bioscience. Agilent Technologies, Inc. was founded in 1999 and is headquartered in Santa Clara, California.

 

One Possession Game

As we discussed earlier, Agilent recently announced reported its fiscal Q4 numbers, including revenues of $1.29 billion, which was up 9% year-over-year. Q4 GAAP net income was $195 million, or $0.61 per share. Last year’s fourth-quarter GAAP net income was $177 million, or $0.54 per share

And the stock has been acting well over recent days, up something like 7% in that time. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action.

Fourth-quarter revenue of $597 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) grew 8 percent year over year, with broad-based strength across major end markets, platforms and regions. LSAG’s operating margin for the quarter was 25.9 percent. Full-year revenue of $2.3 billion grew 9 percent year over year. LSAG’s operating margin for the year was 24.1 percent.

The company also put out some guidance, noting that it expects first-quarter 2019 revenue in the range of $1.265 billion to $1.280 billion, representing growth of 4.4 to 5.7 percent and core revenue growth of 4.5 to 5.5 percent. First-quarter 2019 non-GAAP earnings are expected to be in the range of $0.71 to $0.73 per share.

Agilent Technologies Inc (NYSE:A) has a strong balance sheet, with cash levels far exceeding current liabilities ($2.1B against $1B).

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