Revenue of $1.55 billion represents an increase of 14% reported growth year over year, up 11% on a core(1) basis.
GAAP net income of $288 million, or 93 cents per share.
Non-GAAP(2) net income of $328 million, or $1.06 per share.
Full-year guidance raised with revenue now expected to be in the range of $5.825 billion to $5.900 billion and non-GAAP(3) earnings per share (EPS) of $3.80 to $3.90.
- Second-quarter revenue expected to be in the range of $1.37 billion to $1.39 billion with non-GAAP(3) EPS of 78 cents to 80 cents.
- Agilent Board of Directors authorizes new $2 billion share repurchase program.
Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.55 billion for the first quarter ended Jan. 31, 2021, an increase of 14% compared to the first quarter of 2020 and up 11% on a core(1) basis. First-quarter GAAP net income was $288 million, or 93 cents per share. This compares with $197 million, or 63 cents per share, in the first quarter of fiscal year 2020. Non-GAAP(2) net income was $328 million, or $1.06 per share compared with $252 million, or 81 cents per share, during the first quarter a year ago.
"Agilent's performance in the first quarter was outstanding and exceeded our recently increased revenue expectations," said Mike McMullen, Agilent president and CEO. "Our revenue growth was broad based with all three business groups growing double-digits. The Agilent team stayed focused, executed extremely well and increased market share in key areas. Our ‘build and buy' strategy is delivering for us and the outlook for the remainder of the year is quite strong."
Life Sciences and Applied Markets Group
First-quarter revenue of $722 million from Agilent's Life Sciences and Applied Markets Group (LSAG) was up 13% year over year and 11% on a core(1) basis. LSAG's operating margin was 27.6%.
Agilent CrossLab Group
First-quarter revenue of $532 million from the Agilent CrossLab Group (ACG) increased 13% year over year and was up 10% on a core(1) basis. ACG's operating margin was 26.7%.
Diagnostics and Genomics Group
First-quarter revenue of $294 million from Agilent's Diagnostics and Genomics Group (DGG) increased 18% year over year and was up 15% on a core(1) basis. DGG's operating margin was 18.6 %.
Full-Year and Second-Quarter Outlook
Agilent has increased its outlook and now expects revenue of $5.825 billion to $5.900 billion for fiscal year 2021. Fiscal year 2021 non-GAAP(3) earnings guidance has also increased to a range of $3.80 to $3.90 per share.
Agilent expects second-quarter 2021 revenue in the range of $1.37 billion to $1.39 billion. Second-quarter 2021 non-GAAP(3) earnings are expected to be in the range of 78 cents to 80 cents per share.
The outlook is based on currency-exchange rates as of Jan. 31, 2021.
New Share Repurchase Program
Agilent today also announced that its board of directors has approved a new share repurchase program authorizing the repurchase of up to $2 billion of common stock. The new share repurchase program begins Feb. 18 and replaces the previous program. The timing and number of shares to be repurchased will depend on factors such as the share price, economic and market conditions, and corporate and regulatory requirements. The share repurchase program may be suspended, amended, or discontinued at any time.
Agilent's management will present additional details regarding the company's first-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 "Q1 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 model and financial results. 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 annual report on Form 10-K for the fiscal year ended October 31, 2020. 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 Q1FY21 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. Core revenue growth rate as projected for Q2 FY21 and full fiscal year 2021 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the 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 for the projection.
(2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of non-cash intangibles amortization, transformational initiatives, acquisition and integration costs and loss on extinguishment of debt. 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 Q2 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 $44 million per quarter.