Agilent reports fourth-quarter and fiscal year 2022 financial results
Santa clara, calif.--(business wire)--agilent technologies inc. (nyse: a) today reported revenue of $1.85 billion for the fourth quarter ended oct. 31, 2022, an increase of 11% compared to the fourth quarter of 2021 and up 17% on a core(1) basis. revenue for the full year was $6.85 billion, delivering 8% reported growth and core(1) growth of 12%. fourth-quarter gaap net income was $368 million, or $1.23 per share. this compares with $442 million, or $1.45 per share, in the fourth quarter of fiscal year 2021. non-gaap(2) net income was $456 million, or $1.53 per share during the quarter, compared with $368 million or $1.21 per share during the fourth quarter a year ago. for the full year, gaap net income was $1.254 billion or $4.18 per share, up 6% from fiscal year 2021. non-gaap(2) net income was $1.565 billion or $5.22 per share, up 20% from fiscal year 2021. “agilent had another excellent year, capping off 2022 with an outstanding fourth quarter,” said mike mcmullen, agilent president and ceo. “the agilent team delivered double digit core revenue growth in each of our business groups in fy 2022. our track record of strong execution and broad-based strength across our portfolio sets us up well as we look forward to a new fiscal year.” financial highlights 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 the agilent life sciences and applied markets group (lsag) posted fourth-quarter revenue of $1.12 billion, representing year-over-year reported growth of 16% (up 22% on a core(1) basis). lsag’s operating margin for the quarter was 32.7%. full-year revenue of $4.01 billion grew a reported 9% over last year (up 13% on a core(1) basis). lsag’s operating margin for the year was 29.6%. agilent crosslab group the agilent crosslab group (acg) posted fourth-quarter revenue of $381 million, representing year-over-year reported growth of 7% (up 14% on a core(1) basis). acg’s operating margin for the quarter was 27.4%. full-year revenue of $1.45 billion grew a reported 7% over last year (up 11% on a core(1) basis). acg’s operating margin for the year was 25.5%. diagnostics and genomics group the diagnostics and genomics group (dgg) generated fourth-quarter revenue of $352 million, up a reported 3% year over year (up 8% on a core(1) basis). dgg posted operating margins of 19.5%. full-year revenue was $1.39 billion, which was up a reported 7% year over year (up 10% on a core(1) basis). dgg’s operating margin for the year was 21.7%. full year and first-quarter outlook full-year revenue is expected to be in the range of $6.90 billion to $7.00 billion, representing reported growth of 0.8% to 2.2% and core(1) growth of 5.0% to 6.5%. full-year non-gaap(3) eps is expected to be in the range of $5.61 to $5.69 per share. the outlook for first-quarter revenue is expected to be in a range of $1.68 billion to $1.70 billion, representing reported growth of 0.4% to 1.6% and core(1) revenue growth of 6.8% to 8.0%. first-quarter non-gaap(3) earnings guidance is expected to be in the range of $1.29 to $1.31 per share. the outlook is based on october 31, 2022, currency exchange rates. conference call agilent’s management will present additional details regarding the company’s fourth-quarter and fiscal year 2022 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 “q4 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. about agilent technologies agilent technologies inc. (nyse: a) is a global leader in the life sciences, diagnostics, and applied chemical markets, delivering insight and innovation that advance the quality of life. agilent’s full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. the company generated revenue of $6.85 billion in fiscal 2022 and employs 18,000 people worldwide. information about agilent is available at www.agilent.com. to receive the latest agilent news, subscribe to the agilent newsroom. follow agilent on linkedin, twitter and facebook. forward-looking statements 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 q1 and fiscal year 2023 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 july 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 q4 fiscal year 2022 and full fiscal year 2022 are set forth on pages 6 and 7 of the attached tables along with additional information regarding the use of this non-gaap measure. core revenue growth rate as projected for q1 fiscal year 2023 and full fiscal year 2023 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, business exit and divestiture costs, pension settlement loss, loss on extinguishment of debt 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 q1 fiscal year 2023 and full fiscal year 2023 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 $36 million per quarter. agilent technologies, inc. condensed consolidated statement of operations (in millions, except per share amounts) (unaudited) preliminary three months ended years ended october 31, october 31, 2022 2021 2022 2021 $ 1,849 $ 1,660 $ 6,848 $ 6,319 837 760 3,126 2,912 119 116 467 441 422 389 1,637 1,619 1,378 1,265 5,230 4,972 471 395 1,618 1,347 5 1 9 2 (23 ) (21 ) (84 ) (81 ) 2 73 (39 ) 92 455 448 1,504 1,360 87 6 250 150 $ 368 $ 442 $ 1,254 $ 1,210 $ 1.24 $ 1.46 $ 4.19 $ 3.98 $ 1.23 $ 1.45 $ 4.18 $ 3.94 296 303 299 304 298 305 300 307 october 31, october 31, 2022 2021 $ 1,053 $ 1,484 — 91 1,405 1,172 1,038 830 282 222 3,778 3,799 1,100 945 4,773 4,956 195 185 670 820 $ 10,516 $ 10,705 $ 580 $ 446 455 493 461 441 36 — 329 328 1,861 1,708 2,733 2,729 97 220 536 659 5,227 5,316 — — 3 3 5,325 5,320 324 348 (363 ) (282 ) 5,289 5,389 $ 10,516 $ 10,705 years ended october 31, october 31, 2022 2021 $ 1,254 $ 1,210 317 321 125 110 8 14 24 29 9 17 — 2 67 (98 ) (25 ) (21 ) 11 3 (321 ) (128 ) (248 ) (136 ) 121 64 (22 ) 112 (8 ) (14 ) 1,312 1,485 (291 ) (188 ) — 1 22 12 (13 ) (22 ) (4 ) (5 ) (52 ) (547 ) (338 ) (749 ) 58 55 (67 ) (76 ) (1,139 ) (788 ) (250 ) (236 ) 600 848 — (7 ) (609 ) (417 ) 1,295 1,647 (1,260 ) (1,722 ) (1,372 ) (696 ) (36 ) 3 (434 ) 43 1,490 1,447 $ 1,056 $ 1,490 $ 1,053 $ 1,484 3 6 $ 1,056 $ 1,490 $ 279 $ 211 $ 85 $ 76 non-gaap net income and diluted eps reconciliations (in millions, except per share amounts) (unaudited) preliminary three months ended years ended october 31, october 31, 2022 2021 2022 2021 net income diluted eps net income diluted eps net income diluted eps net income diluted eps $ 368 $ 1.23 $ 442 $ 1.45 $ 1,254 $ 4.18 $ 1,210 $ 3.94 — — — — — — 2 0.01 42 0.14 51 0.17 191 0.64 194 0.63 9 0.03 5 0.02 30 0.10 37 0.12 6 0.02 9 0.03 25 0.08 41 0.13 — — (21 ) (0.07 ) (25 ) (0.08 ) (21 ) (0.07 ) — — 1 — 7 0.02 5 0.02 4 0.01 1 — 4 0.01 1 — — — — — 9 0.03 17 0.06 5 0.02 (73 ) (0.24 ) 63 0.21 (92 ) (0.30 ) 10 0.03 2 0.01 12 0.04 9 0.02 12 0.05 (49 ) (0.16 ) (5 ) (0.01 ) (71 ) (0.22 ) $ 456 $ 1.53 $ 368 $ 1.21 $ 1,565 $ 5.22 $ 1,332 $ 4.34 $ 1,116 $ 962 60.6 % 59.9 % $ 365 $ 276 32.7 % 28.7 % $ 352 $ 341 51.0 % 52.5 % $ 69 $ 71 19.5 % 20.8 % $ 381 $ 357 48.6 % 48.3 % $ 104 $ 94 27.4 % 26.3 % $ 4,007 $ 3,663 60.2 % 60.2 % $ 1,186 $ 1,017 29.6 % 27.8 % $ 1,389 $ 1,296 53.5 % 52.8 % $ 301 $ 273 21.7 % 21.0 % $ 1,452 $ 1,360 47.6 % 46.8 % $ 370 $ 323 25.5 % 23.8 % $ 1,116 $ 962 16% 352 341 3% 381 357 7% $ 1,849 $ 1,660 11% non-gaap (excluding acquisitions & divestitures) year-over-year % change $ 1,114 $ 962 16% 22% $ (58) 352 341 3% 8% (18) 381 357 7% 14% (27) $ 1,847 $ 1,660 11% 17% $ (103) $ 4,007 $ 3,663 9% 1,389 1,296 7% 1,452 1,360 7% $ 6,848 $ 6,319 8% non-gaap (excluding acquisitions & divestitures) year-over-year % change $ 4,005 $ 3,663 9% 13% $ (127) 1,379 1,296 6% 10% (44) 1,452 1,360 7% 11% (59) $ 6,836 $ 6,319 8% 12% $ (230)
