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Agilent Technologies A reported first-quarter fiscal 2025 earnings of $1.31 per share, which beat the Zacks Consensus Estimate by 3.15%. The figure increased 1.6% year over year.
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Revenues of $1.68 billion surpassed the Zacks Consensus Estimate by 0.86%. The top line increased 1.4% on a reported basis and 1.2% on a core basis from the year-ago quarter.
This growth was driven by sustained improvements in Pharmaceuticals and increased demand across Diagnostics and Clinical, Food, and Environmental and Forensics markets. However, the company faced challenges in the Academic and Government, and Chemical and Advanced Materials markets during the reported quarter.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
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After the results were announced, shares of Agilent Technologies dropped 3.7% in after-hours trading. This decline can be attributed to the conservative full-year 2025 guidance, margin declines across all key segments and weak performance in the Asia-Pacific region.
Agilent’s Segmental Top-Line Details
In the first quarter of 2025, Agilent revised its segment reporting structure. The company now operates through three reporting segments—Life Sciences and Diagnostics Markets Group (“LDG”), Agilent CrossLab Group (“ACG”) and Applied Markets Group (“AMG”).
LDG: The segment generated $647 million or 38.5% of the company’s total revenues. This represented a 4.4% increase on a reported basis and a 1% rise on a core basis compared with the prior-year quarter. This growth was driven by strong performance in LC and LCMS instruments, supported by positive customer reception to the newly launched Infinity III LC platform.
ACG: Revenues from the segment were $696 million, accounting for 41.4% of the total revenues. The top line grew 1.5% on a reported basis and 3% on a core basis compared with the prior-year quarter. This was led by solid mid-single-digit growth in Services, including high-single-digit growth in contract revenues.
AMG: Revenues decreased 4% year over year on a reported basis and 2% on a core basis to $338 million, accounting for the remaining 20.1% of the total revenues. This segment delivered better-than-expected revenues despite a challenging year-over-year comparison, which was impacted by the timing of the Lunar New Year. Strong contributions from China’s stimulus further supported top-line growth.
Agilent’s Operating Results
For the first quarter of fiscal 2025, the gross margin in the LDG segment contracted 210 basis points (bps) to 52.8% from the prior-year quarter. ACG’s gross margin decreased 80 bps to 56.1%, while AMG’s gross margin declined 60 bps year over year to 55.8%.
Research and development (R&D) expenses on a non-GAAP basis were $112 million, down 6.7% from the prior-year quarter. Selling, general and administrative (SG&A) expenses on a non-GAAP basis rose slightly to $386 million, marking a 1.3% increase from the prior-year quarter.
As a percentage of revenues, R&D expenses fell 60 bps year over year to 6.7%, while SG&A expenses growth remained flat at 23%.
The non-GAAP operating margin of 25.1% for the first quarter of fiscal 2025 indicates a year-over-year contraction of 70 bps.
The operating margin in the LDG segment declined 30 bps to 18.1% from the prior-year quarter. ACG’s operating margin fell 60 bps year over year to 31.8%. Meanwhile, AMG’s operating margin contracted 130 bps year over year to 24.9%.