Executive Summary
Agilent Technologies Inc. reported Q4 2024 revenues of $1.701 billion, marking a growth of approximately 1% year-over-year. This performance underscores the company’s gradual recovery from previous market challenges, enhanced by a robust demand for its life sciences and diagnostics solutions. Despite facing headwinds in certain segments, Agilent's strong cash flow and efficient cost management strategies have positioned the company favorably as it navigates a dynamic market landscape. CEO Padraig McDonnell expressed confidence in the company's new market-focused organizational structure, which aims to drive customer-centric innovations and operational efficiencies. Management anticipates continued growth in fiscal 2025, bolstered by initiatives such as the Ignite transformation program, which is expected to enhance revenue and margin capture.
Key Performance Indicators
QoQ: 24.47% | YoY:-26.11%
QoQ: 24.74% | YoY:-25.77%
Key Insights
1. **Revenue**: Q4 2024 revenue was $1.701 billion, a 0.8% increase from Q3 2024 and flat on a core basis.\n2. **Gross Profit**: Achieved $916 million in gross profit, yielding a gross margin of 54%.\n3. **Operating Income**: Registered $408 million, with an operating margin of 27.4%, slightly lower than previous quarters due to lower volumes and product mix shifts.\n4. **Net Income**: Recorded net income of $351 million, resulting in diluted EPS of $1.21, marking a decline of 25.8% year-over-ye...
Financial Highlights
1. Revenue: Q4 2024 revenue was $1.701 billion, a 0.8% increase from Q3 2024 and flat on a core basis.\n2. Gross Profit: Achieved $916 million in gross profit, yielding a gross margin of 54%.\n3. Operating Income: Registered $408 million, with an operating margin of 27.4%, slightly lower than previous quarters due to lower volumes and product mix shifts.\n4. Net Income: Recorded net income of $351 million, resulting in diluted EPS of $1.21, marking a decline of 25.8% year-over-year.\n5. Cash Flow: Reported operating cash flow of $481 million, with a free cash flow of $388 million for Q4 2024.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.70B |
0.77% |
7.79% |
| Gross Profit |
916.00M |
0.11% |
7.13% |
| Operating Income |
408.00M |
0.00% |
22.52% |
| Net Income |
351.00M |
-26.11% |
24.47% |
| EPS |
1.21 |
-25.77% |
24.74% |
Key Financial Ratios
operatingProfitMargin
24%
operatingCashFlowPerShare
$1.66
freeCashFlowPerShare
$1.34
dividendPayoutRatio
19.4%
Management Commentary
1. Market Recovery: CEO Padraig McDonnell noted, "With our total company book-to-bill over one, this points to a steady market improvement we are seeing and we expect it to continue in 2025."\n2. New Organizational Structure: McDonnell shared excitement over the company’s new market-focused structure aimed at fostering a ‘customer-first’ approach, stating: "We are aligning business units to our markets facilitating close collaboration among the businesses like never before."\n3. BioVectra Acquisition: The acquisition was highlighted as a strategic move to expand CDMO capabilities, with McDonnell affirming, "With BioVectra now being part of Agilent, we expand our portfolio of services beyond our market-leading oligonucleotide production."
"...our total company book-to-bill was greater than one. This points to a steady market improvement we are seeing and we expect it to continue in 2025."
— Padraig McDonnell
"These changes have no impact on our company’s consolidated financial statements. All financial metrics and guidance during this call will be shared under our historical structure."
— Parmeet Ahuja
Forward Guidance
Management projects revenues in fiscal 2025 to range between $6.79 - $6.87 billion, reflecting reported growth of 4.3% to 5.5%. The company expects core growth between 2.5% to 3.5%, with the potential for a stronger performance in the second half of the year. The anticipated recovery in the China market and improved funnel activity is expected to significantly contribute to results, with focus on maintaining a disciplined approach to OpEx amidst evolving market conditions. Management emphasizes a cautious optimism about stabilization and growth after a period of decline in the pharma sector.