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Highlights:
Fourth-quarter fiscal year 2021
Revenue of $1.66 billion represents 12% reported growth; and up 11% on a core(1) basis.
GAAP net income of $442 million with earnings per share (EPS) of $1.45, up 104% from the fourth quarter of 2020.
Non-GAAP(2) net income of $368 million with EPS of $1.21, up 23% from the fourth quarter of 2020.
Fiscal year 2021
Fiscal year 2021 revenue of $6.32 billion delivers 18% reported growth and a 15% increase in core(1) revenue over fiscal year 2020.
Full-year GAAP net income of $1.21 billion with EPS of $3.94, up 71% from fiscal year 2020.
Non-GAAP(2) net income of $1.33 billion with EPS of $4.34, up 32% from fiscal year 2020.
Outlook
Fiscal year 2022 revenue expected in the range of $6.65 billion to $6.73 billion, representing reported growth of 5.2% to 6.5% and core(1) growth of 5.5% to 7%. Fiscal year 2022 non-GAAP(3) earnings guidance of $4.76 to $4.86 per share.
Fiscal first-quarter revenue guidance of $1.64 billion to $1.66 billion, representing reported and core(1) revenue growth of 5.9% to 7.2%. Fiscal first-quarter non-GAAP(3) earnings guidance of $1.16 to $1.18 per share.
Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.66 billion for the fourth quarter ended Oct. 31, 2021, up 12% year over year (core(1) growth of 11%). Revenue for the full year was $6.32 billion, delivering 18% reported growth (core(1) growth of 15%), up a record $980 million above that of fiscal year 2020.
On a GAAP basis, fourth-quarter net income was $442 million, or $1.45 per share. This compares with $222 million, or 71 cents per share, in the fourth quarter of fiscal year 2020. Non-GAAP(2) net income was $368 million, or $1.21 per share during the quarter, compared with $305 million or 98 cents per share during the fourth quarter a year ago.
For the full year, GAAP net income was $1.21 billion or $3.94 per share, up 71% from fiscal year 2020. Non-GAAP(2) net income was $1.33 billion or $4.34 per share, up 32% from fiscal year 2020.
“Our strong fourth quarter closes out a record top- and bottom-line performance in fiscal year 2021,” said Mike McMullen, Agilent president and CEO. “We continue to see strong momentum in our business and look forward to the Agilent team extending it into the year ahead.”
Financial Highlights
Life Sciences and Applied Markets Group
Fourth-quarter revenue of $747 million from Agilent’s Life Sciences and Applied Markets Group (LSAG) grew a reported 11% year over year (also an increase of 11% on a core(1) basis). LSAG’s operating margin for the quarter was 26.6%. Full-year revenue of $2.82 billion increased a reported 18% versus fiscal 2020 (up 16% on a core(1) basis). LSAG’s operating margin for the full year was 25.6%.
Agilent CrossLab Group
The Agilent CrossLab Group (ACG) posted fourth-quarter revenue of $572 million, representing year-over-year reported growth of 10% (up 9% on a core(1) basis). ACG’s operating margin for the quarter was 29.9%. Full-year revenue of $2.20 billion grew a reported 16% over last year (up 12% on a core(1) basis). ACG’s operating margin for the year was 28.1%.
Diagnostics and Genomics Group
The Diagnostics and Genomics Group (DGG) generated fourth-quarter revenue of $341 million, up a reported 16% year over year (up 13% on a core(1) basis). DGG posted operating margins of 20.8%. Full-year revenue was $1.30 billion, which was up a reported 24% year over year (up 20% on a core(1) basis). DGG’s operating margin for the year was 21.0%.
Fiscal Year 2022 and First-Quarter Outlook
Fiscal year 2022 revenue is expected to be in the range of $6.65 billion to $6.73 billion, representing reported growth of 5.2% to 6.5% and core(1) growth of 5.5% to 7%. Non-GAAP(3) earnings-per-share guidance for fiscal year 2022 is in the range of $4.76 to $4.86 per share.
The outlook for fiscal 2022 first-quarter revenue is expected to be in a range of $1.64 billion to $1.66 billion, representing reported and core(1) growth of 5.9% to 7.2%. Fiscal first-quarter non-GAAP(3) earnings guidance is in a range of $1.16 to $1.18 per share
The outlook is based on Oct. 31, 2021, currency exchange rates.
Conference Call
Agilent’s management will present additional details regarding the company’s fourth-quarter and fiscal year 2021 financial results on a conference call with investors today at 1:30 p.m. PST. The event will be webcast live in listen-only mode. To listen to the webcast, select the “Q4 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.
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 revenue and non-GAAP earnings guidance for the first quarter and full fiscal year 2022, future amortization of intangibles and 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 quarterly report on Form 10-Q for the quarter ended July 31, 2021. 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 2021 and full fiscal year 2021 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 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, pension settlement loss and net 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 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 $50 million per quarter.