Agilent Technologies Inc. (NYSE:A) Q1 2019 Earnings Conference Call - Final Transcript

Feb 20, 2019 • 01:30 pm ET


Agilent Technologies Inc. (NYSE:A) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to Agilent Technologies First Quarter 2019 Earnings Conference Call. (Operator Instructions) And as a reminder, today's conference is being recorded.

I'd now like to hand the conference over to Ankur Dhingra, Vice President, Investor Relations. Please go ahead.

Ankur Dhingra

Thank you, and welcome, everyone to Agilent's first quarter conference call for fiscal year 2019. With me are Mike McMullen, Agilent's President and CEO; and Bob McMahon, Agilent's Senior Vice President and CFO. Joining in the Q&A after Bob's comments will be Jacob Thaysen, President of Agilent's Life Science and Applied Markets Group; Sam Raha, President of Agilent's Diagnostics and Genomics Group; and Mark Doak, President of Agilent CrossLab Group.

You can find the press release, investor presentation and information to supplement today's discussion on our website at Today's comments by Mike and Bob will refer to non-GAAP financial measures. You will find the most directly comparable GAAP financial metrics and reconciliations on our website.

Unless otherwise noted, all references to increases or decreases in financial metrics are year-on-year. References to revenue growth are on a core basis. Core revenue growth excludes the impact of currency and the acquisitions and divestitures completed within the past 12 months. Guidance is based on exchange rates as of January 31.

We will also make forward-looking statements about the financial performance of the Company. These statements are subject to risks and uncertainties and are only valid as of today. The company assumes no obligation to update them. Please look at the company's recent SEC filings for a more complete picture of our risks and other factors.

And now, I would like to turn the call over to Mike.

Michael R. McMullen

Thanks, Ankur, and thanks for joining us on our call today. I'd like to start by welcoming Ankur to his first earnings call as our Vice President of Investor Relations. While Ankur is new to this role, he is not new to Agilent, excelling in senior leader level finance roles for over 16 years. I believe many of you on this call have already met Ankur. But in case you have not, I want to reiterate a key theme he is sharing. We remain committed to sustaining excellence in our IR team and maintain a strong relationship with you, the investment community. We miss Alicia, but are very pleased to have such a capable successor in Ankur.

Now on to the Q1 results. 2019 is off to a strong start. The Agilent team continues to deliver excellent results, with both revenues and earnings exceeding our guidance. Q1 revenues totaled $1.28 billion, this represents 6.1% core growth against a tough Q1 2018 compare.

Our performance is highlighted by double-digit growth in both our Agilent CrossLab and Diagnostics and Genomics Group. From an end market perspective, our results led by double-digit growth in the pharma, clinical and diagnostics and environmental forensics markets.

Our Q1 operating margin is 23.1%, an increase of 120 basis points from last year. Our Agile Agilent programs are driving