Revenue of $1.61 billion represents 5% reported growth; and up 7% on a core(1) basis.
GAAP net income of $274 million with earnings per share (EPS) of 91 cents, up 30% from the second quarter of 2021.
Non-GAAP(2) net income of $340 million with EPS of $1.13, up 16% from the second quarter of 2021.
Full-year revenue is expected to be in the range of $6.67 billion to $6.73 billion, representing reported growth of 5.6% to 6.5% and increased core(1) growth to a range of 8% to 9%. Fiscal year 2022 non-GAAP(3) EPS is increased to an estimated range of $4.86 to $4.93 per share.
Third-quarter revenue expected to be in the range of $1.625 billion to $1.650 billion with non-GAAP(3) EPS of $1.20 to $1.22.
Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.61 billion for the second quarter ended April 30, 2022, an increase of 5% compared to the second quarter of 2021 and up 7% on a core(1) basis.
Second-quarter GAAP net income was $274 million, or 91 cents per share. This compares with $216 million, or 70 cents per share, in the second quarter of fiscal year 2021. Non-GAAP(2) net income was $340 million, or $1.13 per share during the quarter, compared with $299 million or 97 cents per share during the second quarter a year ago.
“The Agilent team delivered once again, demonstrating the resilience and strength of our business model,” said Agilent President and CEO Mike McMullen. “We delivered 7% core revenue growth, exceeded our EPS expectations and continued to build order backlog, all despite macro challenges including temporary COVID-19 shutdowns in China. Our momentum continues and we have again raised our full-year outlook.”
In the first quarter of 2022, Agilent implemented certain changes to its segment reporting structure. Prior period segment information has been recast to reflect these changes. These changes have no impact on Agilent’s consolidated financial statements.
Life Sciences and Applied Markets Group
Agilent’s Life Sciences and Applied Markets Group (LSAG) reported second-quarter revenue of $896 million, a year-over-year increase of 2% (up 4% on a core(1) basis). LSAG’s operating margin for the quarter was 25.5%.
Agilent CrossLab Group
The Agilent CrossLab Group (ACG) reported second-quarter revenue of $353 million, a year-over-year increase of 7% (up 10% on a core(1)basis). ACG’s operating margin for the quarter was 24.6%.
Diagnostics and Genomics Group
The Diagnostics and Genomics Group (DGG) reported second-quarter revenue of $358 million, a year-over-year increase of 14% (up 15% on a core(1)basis). DGG’s operating margin for the quarter was 25.5%.
Full Year and Third-Quarter Outlook
Agilent has increased fiscal year 2022 non-GAAP(3) EPS to an estimated range of $4.86 to $4.93 per share and continues to expect revenue of $6.67 billion to $6.73 billion for the full-year outlook, representing reported growth of 5.6% to 6.5% and resulting in an increase in core(1) growth to a range of 8% to 9%.
The outlook for fiscal 2022 third-quarter revenue is expected to be in a range of $1.625 billion to $1.650 billion. Fiscal third-quarter non-GAAP(3) earnings guidance is in a range of $1.20 to $1.22 per share.
The outlook is based on April 30, 2022, currency exchange rates.
Agilent’s management will present additional details regarding the company’s second-quarter 2022 financial results on a conference call with investors today at 1:30 p.m. PDT. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the “Q2 2022 Agilent Technologies Inc. Earnings Conference Call” link on the Agilent Investor Relations 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, financial results, revenue, and non-GAAP earnings guidance for Q3 and fiscal year 2022 and future amortization of intangibles. 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 quarterly report on Form 10-Q for the fiscal quarter ended January 31, 2022. 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. Reconciliations between GAAP revenue and core revenue for Q2 fiscal year 2022 are 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 Q3 fiscal year 2022 and full fiscal year 2022 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 asset impairments, intangibles amortization, transformational initiatives, acquisition, and integration costs, change in fair value of contingent consideration, loss on extinguishment of debt, business exit and divestiture costs and net loss (gain) on equity securities. 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 Q3 fiscal year 2022 and full fiscal year 2022 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 $48 million per quarter.