Agilent Technologies Reports Fourth-Quarter 2016 Results

Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.11 billion, up 7.3 percent year over year (up 6.3 percent on a core basis (2)) for the fourth fiscal quarter ended Oct. 31, 2016.

Fourth-quarter GAAP income from continuing operations was $124 million, or $0.38 per share. Last year's fourth-quarter GAAP income from continuing operations was $140 million, or $0.42 per share.

During the fourth quarter, Agilent had intangible amortization of $32 million, impairment costs of $25 million, acquisition and integration costs of $13 million, transformation costs of $6 million and $5 million of other costs. Excluding these items, and a tax benefit of $12 million, Agilent reported fourth-quarter adjusted income from continuing operations of $193 million, or $0.59 per share (1).

"Agilent delivered a great fourth quarter, capping off a strong fiscal year 2016," said Mike McMullen, Agilent president and CEO. "Our fourth-quarter revenue was up 6.3 percent on a core basis (2) supported by strength across all businesses, and earnings per share came in well above our guidance range."

"Key drivers for our better-than-expected quarter were stronger-than-expected growth in pharma and Europe, along with continued strength in China. Looking ahead, we are well positioned to capture market growth with our strong lineup of new offerings recently introduced and in the pipeline for 2017," McMullen added.

Fourth-quarter revenue of $548 million from Agilent's Life Sciences and Applied Markets Group (LSAG) grew 6 percent year over year (up 5 percent on a core basis (2)), with strength in pharma, food and forensics. LSAG's Q4 operating margin was 22.8 percent.

Fourth-quarter revenue of $370 million from the Agilent CrossLab Group (ACG) grew 8 percent year over year (up 8 percent on a core basis (2)). Both services and consumables experienced healthy growth across all geographies. ACG's operating margin was 22.7 percent in the quarter.

Fourth-quarter revenue of $193 million from Agilent's Diagnostics and Genomics Group (DGG) increased 8 percent year over year (up 8 percent on a core basis (2)), led by strength in pathology and nucleic acid solutions. DGG's operating margin for the quarter was 19.6 percent.

Agilent expects first-quarter 2017 revenue in the range of $1.04 billion to $1.06 billion. First-quarter non-GAAP earnings are expected to be in the range of $0.48 to $0.50 per share (3).

For fiscal year 2017, Agilent expects revenue of $4.35 billion to $4.37 billion and non-GAAP earnings of $2.10 to $2.16 per share (3). The guidance is based on Oct. 31, 2016 exchange rates.

About Agilent Technologies

Agilent Technologies Inc. (NYSE: A), a global leader in life sciences, diagnostics and applied chemical markets, is the premier laboratory partner for a better world. Agilent works with customers in more than 100 countries, providing instruments, software, services and consumables for the entire laboratory workflow. Agilent generated revenue of $4.20 billion in fiscal 2016. The company employs about 12,500 people worldwide. Information about Agilent is available at www.agilent.com.

Agilent's management will present more details about its fourth-quarter FY2016 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be webcast live in listen-only mode. Listeners may log on at www.investor.agilent.com and select "Q4 2016 Agilent Technologies Inc. Earnings Conference Call" in the "News & Events Calendar of Events" section. The webcast will remain available on the company's website for 90 days.

Additional information regarding financial results can be found at www.investor.agilent.com by selecting "Financial Results" in the "Financial Information" section.

A telephone replay of the conference call will be available at approximately 4:30 p.m. PT today through Nov. 22 by dialing +1 855 859 2056 (or +1 404 537 3406 from outside the United States) and entering passcode 94476938.

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