Agilent (A) 20 Nov 232023 Q4 Earnings call transcript

Ladies and gentlemen, welcome to the Agilent Technologies Q4 2023 Earnings Conference Call. My name is Bo and I will be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Parmeet Ahuja, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Bo, and welcome, everyone, to Agilent's conference call for the fourth quarter of fiscal year 2023. McMullen, Vice and President Mike McMahon, and are Senior Agilent's and me Agilent's CEO; President Bob With CFO. This presentation live. is being webcast release this to measures. comments webcast by quarter non-GAAP fourth available on information financial discussion for and at investor are with news www.investor.agilent.com. Today's website along of and today's to Bob financial recording a Mike our presentation supplement The results our will refer

GAAP on basis. XX divestitures a completed references growth forecasted financial Unless Guidance growth are You increases and metrics currency past the reconciliations directly on core will months. excludes of find financial the rates. impact website. all within the on acquisitions is revenue any references and in based otherwise Core decreases exchange comparable noted, and to to most or our year-over-year, and metrics revenue

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

and everyone, today. Parmeet, our joining call Thanks, thanks, for

we've CrossLab the of this he's welcome, and the may Markets than short known of industry. joining at already name we to Agilent Genomics you, we're with Group, member also our In want our Phil and the our Group, some time Phil's team, and and of overseeing pleased have the joined and of Before XX up get our Applied business. market-leading as LSAG Raha, some the Agilent President a in results that heading acquisition Agilent has Varian Agilent Diagnostics experience new well the more been discussing at time Sam business. I coming to today We're Group. and extremely Phil. tremendous McDonnell, President for knowledge, mention spectroscopy over but to value into years, We're and outlook, of by the strength row, be Padraig with Phil for in President Science first a by of call Life Binns, seen leadership us proven leadership senior Phil the Phil's

results. well Now conditions. perform under on at fourth of Revenue X.X% team last to is This $X.XX end declined to XX.X% our billion Agilent again quarter challenging once the market continued after high guidance. of increasing year. our core The

manage operating environment our healthy in our helped XX.X%. $X.XX fourth market exceeded per QX share deliver Our structure proactive cost this of to guidance. us quarter approach margins of earnings

when a of against this a grew decline XX%. last compare EPS While it tough was comes XX%, year

While of see the market continues challenging, to stabilization. starting we signs we're to believe be

was point data instruments. for and for encouraging the book-to-bill our an As our company LSAG than greater ratio X quarter, the X for

Let's close look regional performance, results. at starting with a now QX take our our

During year-on-year year. China, the sequential China XX% declined we growth, XX% In for year-on-year, as expected. growing in QX delivered while our except after quarter, down business last

in much very with slightly the quarter monthly improved are year-on-year line performance results these the sequentially, expectations. down progressed. was our China While And as

addition, quarter. revenue In higher were for slightly orders than the

work firsthand since to was that a customers looking to bolster data the new of outside officials. continued and in biopharma early the support late too sign trend, key biopharma at an to of I there. I economic expenditures Within size activity role being X and caution the reminded by see play meet customers is it the these saw government team, In life the convinced remain Agilent sheer Chinese among as single high in I'm the to form pharma pharma, done our this market the will on XX%, I China potential China near economy with the both market to will for points China first traveled into continued create I growth an grew at call September, capital outbreak we largest While our to China COVID In that occurring our confident stabilization. and return of molecule, instruments. future. business important term environment continue will sciences, Geographically, growth. end digits. the declined better driven market, than small and time

revenue down in performance compare last unit, core the in is against by Pharma in the the year. segment versus particularly LSAG's XX% business high XX% a hold Markets above of at off Science delivered on year XX%. business, our million, last Applied Life and expenditures, continue capital Looking the of range. low growth XXs to Group tough declined $XXX Customers which This

On market hand, these remain demand optimistic growth we see strength future and are Materials growth we about our before secular as PFAS continue in segment. in as the other customer segments. solutions strong Advanced These than trends [indiscernible] in to higher and continued the well X

value to across China. reliable up services and and automated except systems up offset digits, providing PFAS, allowing attributes also ] While saw the customers. on value growth $XXX of solutions to chain. revenue Services Contract continue innovate end double are significant X% regions number which our We our side The systems with all the particular, quality associated launched across for analysis fully ACG June group positive new interest of UHPLC core customers is applications continue innovative key companies. ASMS, provide new decision-making the we've unique biopharma at outside for like challenged, solutions the by in lab. business use, market delivered remains and markets generate million, orders. We're on instrument customer new the deliver The was a in in X% [ Agilent large bringing LC [indiscernible] by real-time to easy and critical XXXX posted and placements. focused environment reported new products all online Quad, we with The biopharma a basis. of The also Triple

continues million grown years. revenue the the increasing the ACG quarter, by The pay number to the results of of Diagnostic In $XXX a flat pathology by off. and rate and X% services both over continued low Our strategy These which connect strong the offset consumables Group genomics delivered reported. DGG's were up represented nicely delivered Genomics NASD business businesses, contract and basis that results market core XX% revenue, growth. on both double-digit instruments. in a led of has challenge

We're Our confident continue prospects the for NASD markets long-term portfolio as capacity we expansion planned. and the in growth serve. are

finish foundation contributions DGG I well. covering us DGG years I his have Sam for the Raha wish Sam the I over Before business. to helped to want a strong for thank build

uncertainty gas core. and full highlights, in of XXXX In recognize have as group delivered view we moderating by and economic sustainability. billion the market from pharma industry we eventually long-term not addition these face to we sharing the $X.XX net regarded business got will China. Agilent's reaching near to headwinds the conditions, highly revenue the the it quarter, however, in of the particularly half client-based second approved zero challenging significance X.X% the we of growth year had XXXX. growing commitment initiative. market of a the greenhouse anticipated during for We Despite market for entered A industry targets ago, been emissions targets year our

including X points XX we results, testament exceeded our of basis basis up quarterly every X-year delivering growth XX.X%. long-term This this year met Earnings 'XX years. to is of This operating provided, X%, guidance. rate delivered the up While growth share lower than In of for year. end last execution than growth solid compound ability, team's $X.XX XXX the leverage in more was earnings per guidance our year FY margins is the initially a and range the FY up annual 'XX, were full is points growth at expected, or X%. our we we high

Our rate EPS is X-year compound annual growth XX%. for

of a pivot to I'm Looking challenges challenging and to What while focused take back, customers. relentlessly proud XXXX the on team's is year. our ability these was quickly adjust Agilent action staying particularly

to engagement of we At environment. another same at of significantly number year. in excellent, achieved Agilent's employer customer all-time to market an our All reduce be as us extremely leverage remain we earnings ratings the expenses, best last over helped deliver work employee a continues this satisfaction difficult highs. awards the time, year While

to Bob some more high-level for on I beyond. detail, to 'XX over provide FY want it and perspective turning Before

initial we anticipate us XXXX, For at the expect At throughout our leveraged the of range the delivering again outlook slow ahead high revenue our has a guidance, we In same our year. the EPS for but to year steady recovery growth. EPS in growth. time, return to

being we convinced transient. remain look that faced by industry ahead, As market are we today challenges the

on to success our fuel winning Our the innovation in of products, condition. increase, human and services further One will We end the remain Agilent growth. customers. all most focused The continues team importantly, which our investments by the to marketplace, essential are and are markets our improving pace differentiated science, in of powered discovery

We are for over will QX. and now, now with long-term you on share joining along the on and us year. today. well our fiscal quarter the XXXX specifics detail view positioned to And Thank more more for initial growth. Bob for you. Bob,

the fourth through will quarter as other the focus Thanks, our revenue additional noted, for on the core quarter metrics. with against Mike, take growth EPS and top expectations XXXX details finish and and of the well some at with you conditions. and macroeconomic in good then otherwise afternoon, the we up well non-GAAP year results. end on fiscal income today, year first executed financial guidance remarks finished our remarks exceeding quarter. and everyone. In challenging I'll my I'll as key the Agilent provide Unless my as guidance statement

This growing QX results recovery created the revenue core of year. down X estimated from when QX reported in QX after the benefited XX.X% shutdown X.X% Shanghai point a in the of we X.X% year-on-year headwind year last This basis. last was of in an billion, quarter. this from on and $X.XX is

LSAG As in capital our weakness saw the we purchases in impact biggest in with business. China expected,

pharma to share last like was versus the largest while additional in molecule growth declined quarter. down I'd XX% of markets on our in for QX our declined XX% X%, small Biopharma XX%. market, Now detail Revenue year. end

China. and growth declined ex in in molecule And the X% the while was small Biopharma pronounced up small Chemicals of while was China, down, sequentially in versus the up However, year, and last was XX% grew outside On flat quarter. sequentially. molecule decline year. Materials for Advanced XX% quarter the China most solidly was

single-digit in single-digit as High helping drive testing, an high the Americas X% important Americas, and down subsegments Our Europe down and growth low up X% against the Materials Energy in market was food The down the Americas Advanced food the in in by combined. while is area regions. In a growth testing Chemicals year. were PFAS was other last digits and declines XX% XX%, were comparison tough roughly all emerging globally offset double growth growth.

testing Similar expect PFAS food markets multiple market, and We Americas to end declined the X% versus driver across a to on up a continue basis. over region which PFAS. performance offset will growth continues last strong was for market The digits chemicals growth, up XX% was time. environmental double but be down slightly forensics driven to year. growth This by year-on-year the strong experience softness China, in primarily sequential by

clinical declined the business Our diagnostics X%. market in and

was weakness While it than academia pressured government businesses, by single Results we the digits was down low funding, delivered in and genomics. The weakness driven by in all by offset double-digit across strength geographies quarter. China market Europe. growth with in the offset continued were Americas, and our low pathology-related at in government more

XX% was China year, down declined quarter. mentioned, expectations growing of of quarter. into was the Americas single in in coming the As in down low mid-single both The line XX% our in Asia QX and year-on-year after Europe digits with rest Mike last digits

rest the for an except low except geographies like end X% to summarize the digits I'd pharma, was turning grew for geography. mid-single was which P&L, end to some full market all highlights and to markets down in which the Before From China, globally. year And perspective, X%. of all by quickly market addition, grew year, down

and XX.X% quarter. was to slightly flow revenue a incremental Fourth Now the stronger-than-expected quarter. than quarter QX, execute operating high margin a our our team line, Despite the declines, cash continues was at in the very Below which back the interest generating income P&L our gross to in margin the healthy internal we benefited XX.X% expectations. better for was level. from

from share XX%. million as grew per for outstanding, we albeit Our was our it had together, expected. Putting and shares earnings XX.XX% the XXX ago diluted exceeding tax year all XX% both down when expectations, quarter, were $X.XX rate a EPS

a grew couple or XX EPS quickly is Mike capped the X% overcoming earnings top delivering by team's ability increased grew headwinds. to still where to adapt real and our This As QX mentioned, while of on changes a while results year we operating on market leveraged X.X% points the currency basis margins points line, by growth. of statement a

of of the flow the sheet. Agilent results. cash to of well quarterly NASD on net in Turning the million strength In as capital spending and by XXX% over our flow cash adjusted million, which flow generated very incredibly is income we of remains proud QX, team $XXX invested balance expansion, I'm strong operating capacity QX expenditures. continued cash and ongoing driven CapEx $XX track.

For the in over XX% we an delivered year, $X.X year. cash flow, of free billion last increase

we sheet with balance a ratio the end Our year as net of to X.Xx. continues remain fiscal healthy leverage

repurchase in we strong to and through a and And flow. a year, market, great $XXX In in $XXX in $XXX to share With the shares. to cash paid balance $XX dividends company we million is million the million current be returned million challenges $XX quarter, the repurchases. it spent sheet in the dividends million with and for fortress out shareholders

also our year Looking dividend X% our every them we announced shareholders. XXXX. may first increase we worth It's another source to since quarterly providing you our we've forward, in in have recently issuing began increased that seen of value that noting dividend, a

let's first on year our to upcoming for and move outlook the Now fiscal quarter.

As Mike recovery but fiscal XXXX. throughout to see a stated, expect slow we steady

market we better. of depressed down year, interest rates, our Like exchange markets be perform However, continued for rates the to we several we expect acknowledge and slightly high to uncertainty, capital peers, while also the expect the volatile spending.

of taken adjust cost to our we've additional million savings. is our into slower steps the Given guidance Incorporated $XXX structure. market cost conditions, roughly expected

business. optimization Given the exit savings the the the in a little we've the want detail decisions more ] DGG, was significance, provide I these which portfolio taken Biosciences XX% of loss [ related actions. Roughly to of Resolution on to or of

enable optimizing and logistics the other our QX savings charge in results. spend Another million XX% Along footprint discretionary as estate is $XX we even tied variable and real necessary optimizing rates. taken These related material cost long-term as delivers the compensation in earnings critical year. help growth to FY are difficult, well to we've reductions, savings ensure from and as restructuring to most inevitably as return the to and reductions our GAAP us when a continue investments costs workforce. leveraged actions well our while ensure with resets actions, company fund these growth continued These emerge our related remaining with in stronger to fund their for this will 'XX markets our to

As book-to-bill potential Mike X LSAG noted than exited with some with and company earlier, we X signs for of of stabilization ratio the greater QX a instruments. for

to guidance. positive, is initial prudent this our we're in While going be

range year the a slight the points expecting the of related the Resolution of geographic For from guide, the is X.X headwind decline end next of point look range in of the of From represents to FY revenue year. X.X% still second the are full to modest see Currency we This the half China, to high it will range year-on-year. recovery billion. X.X% LSAG while 'XX decline half of year. From full both similar while expect XX headwind X.X% X growth also expect $X.XX FY basis, with and first half in during group decline to perspective, for end. will at initial $X.XX a growth On growth the in growth a a we in and to growth business our to year pressured. expect ACG reported core still the of And in the of at a slight expect And in while Bioscience. Europe. instruments billion we we is expect a be of view we perspective, in M&A terms second a Americas to DGG is of points, we a 'XX basis phasing, low

represents income we each million and We the and expected expansion FY rate EPS growth expect range outstanding. expect X% a to are XX.X% $X.XX. flow to line, XXX year. perspective, offset Fiscal other, for This interest of we another a be shares margin of projecting modest the below non-GAAP $X.XX year. to range robust a flat XXXX And is tax expense to operating From cash 'XX. versus in

roughly trained billion at CapEx We flow expecting NASD's cash million increases C&D as expansions. operating in $X.X in are on $XXX spending

expecting Looking M&A minimal impact. to having XX.X% growth what QX are comp growth last no midpoint, just range XXXX, currency against in we with assumes difficult This of to is of core and we This the expect At of that during flush the end resembles billion. year. in calendar $X.XXX budget represents revenue the delivered significant X.X%, QX a $X.XXX another this in we of of year. billion and to XX% a decline QX

$X.XX quarter. First ramped quarter $X.XX are earnings cost fully XXXX as savings share the be between per expected to non-GAAP the and through

Mike in growth the growth markets our future optimistic low and expecting long-term of As prospects. indicated, while we remain XXXX, about our are we

will and remains know company to for back market will very floor Parmet I the come stronger out turn profitable now as when business and healthy returns. And we questions. over your Our I a Parmeet? growth

Bob. the please Thanks, instructions if Q&A you Bo, for provide could now.

Vijay go afternoon [Operator at Evercore first ISI. We'll to Instructions] this Kumar

what comments this QX that helpful no if looks turn those instrumentation from is X those here. ] company easier. for assuming [ LSAG Mike, has book-to-bill get numbers instrumentation? starting turn comments Overall comps guidance, like some China? instrumentation here. turned [ with book-to-bill it's QX turned, in ex maybe ]. And benefit And Curious Why

Yes, Vijay.

me Let take that.

as positive well. I ratio, LSAG China it's the actually -- China excluding think both including if instruments, actually it's to similar and very slightly for at look book-to-bill was you China.

as as we're quarter. have a -- time. some we our certainly, QX, in So we're our taking prepared And this have at a QX approach do kind good one positive. prudent to seasonality from We typically a first remarks, we of taking that's did see mentioned it but to a we the quarter sign. And

part was story, Yes, encouraging instrument side. XX% to comp the from the [indiscernible] on call, last as it year with see big is -- we in that the of signs as of I the book-to-bill we well. some stabilization kind think But too, Vijay, initial of were

prudency Understood. [ ] the off batch to and I'm here. hear glad right

into that the script, got Vijay. We

assuming one fiscal just -- are [ guidance On here. What you in related China 'XX? raw NASD more for on ] for

Yes.

year. mid-single-digit thinking full are we China, for decline for the So

very So then we're NASD, single-digit right expecting growth. similar -- low this now, to mid-single-digit year. And for

Yes. digit. Mid-single

now Donnelly Patrick We to go Citi. at next

the into of implication on seems some the is just again, of the second kind about the XQ half Maybe trends a of to the you visibility on those the And as little get optimism obviously order's follow-up on bit it. the prudent in the confidence It guide, you comps can recovery guide. easier the in XQ you the ramp in for year that based and work said, here? you ramp is progresses as the think order the through guess what just market about gives kind talk Maybe XQ, like, encouraging. I the when a you it as

we gradual Patrick. I we lead make in when what like want here. these to can Yes, you'd additional comps sure, grow. around then and add think described off, as comments about a Bob, recovery any and you But

potential forward, like to we first all, the their business, audience in a 'XX. The is budgets our half And result in be to for which that that the growth, signs the of go the in the too right? be interest release. funnels let's But think things are funnels to we've fact been time different that continue sales The stabilization the an order of think was do it's XXXX second most still has of early us, our back early, are spending that in book. of to I remind X, do which lot saw things and company. had for was why though And same our customers. we above first start sales instrument second capital half the that company that see year to these what much environment it's which healthy at part with half potential the we we important been in customers book-to-bill phone, initial listen, a some pressured from is, you of very which we to be looking before, predictor will know going fact there the early the constrained. expect show of the while some this, confirming of of listen, things So healthy. And has remain to like point seen is

be So my broad-based And not I I customers talking to better. expected. from We're some can hear release And segments this, we're a market want Materials. talk as tools, but some the second focused we half then be hear expansion there's R&D new our recovery, plan compare to are skies too we're on for but big to don't in get And you some down Patrick, going think testing calling investments. -- what's customers, about investments we 'XX about going certain of market hearing easier capacity earlier, PFAS in an as Advanced well. mentioned

year to And got that. look journey degree a potential [indiscernible] again, high will I we've going we're I we of do this lot expect some we be customers a Again, challenged. but return know And look And to our about still the the think get a Again, signs guide remain our not -- back for be there. We've quite return we back into is -- stabilization, of half budgeting information things mentioned, kind our got to I confident better in what how growth. now, our like. we'll of to think as XXXX. simply it's reflects thinking markets right encouraging early this as up capital the of of for So when And the it's phase I think hope. a are growth. seeing

for year but and remarks, happened up QX, and the Yes. budget where I And approach here. building we're the seeing mentioned in we're as prudent that that in our about did also November or that a and earlier assuming in you prepared December, we're asked but think our last we're flush against I we not into a into delivery estimates. Patrick, going taking year have

So that would -- would thing us. nice for it happens, then of a all be be that

Yes, absolutely, Bob.

just Bob, It the savings helpful side, some pieces. you to That's different like kind bit moving in a helpful. DGG, on I moving out pulling ability cost on hear more where hit to the sounds maybe, among costs levers, just margin margin being some numbers. give you margins a guess of color these Bob. through additional few up talk And pieces, the a to take others. you're can the Obviously, of you about talked bit.

I think there incentive things that. are some like comp, headwinds like

just of and some cost talk terms takes maybe confidence in the gives and outs. of So there the about

that's I that of half don't that. and exit a comp there. that pay. that million And think backs, great ResBiobusiness, it there, to it the the -- streamline associated add the say we've the is is would would kind product because have resets, drop insight decisions about would sales variable XX% with that of because say If do DGG the in also between portfolio $XXX reset tough we across piece other little actually the lines to I in taken a is I say but a some roughly with bottom of P&L, roughly Yes, we biggest is Patrick. we so and some Yes, have our some take line over of really

is The COGS. within really XX% other our

into our done a then of will costs around site leaning of logistics costs. and well, OFS And down up team and reducing talked really P&L. job kind I show the phenomenal which Our about the as material consolidation has

the a smaller spend we've estate final look at focused real closed where really. reductions between have to be infrastructure several is then the count And optimization, the of rightsized sites would then would -- piece areas really it head also around on actually our demand. we've but be that and kind So footprint taken world which discretionary

to And $XXX think Mike, high we'll degree comes million, growth about confidence, [indiscernible] we XXX%, and the I when this about Patrick, on it this deliver of the the control recovery covenants this. hitting is

Matt now at Sykes Sachs. next We'll go to -- Matthew Goldman

X.X on normalization digits, you over given some past, room level guys of that ramp how low confidence just double the enough CapEx But wiggle from guiding to noticed next double NASD, as kind next Maybe digits keep is which we've in just it's high you're in the year? years, capacity. I out? call digits, the year, just growth of mid-single probably of lay just in step it to Or that year, capacity is up in that terms next market there investing some you area gone

jump one. right that I'll into

tracking continue in on plans So for capital they're full to tried make expansion the business come this out script. that future high. our We're I But remains invest going to to ahead the to and growth according long-term the steam plan.

CapEx NASD. you that's when think all relative little the a Bob, maybe I of to can involved. fact, In relative this side little what relative said cost And and we the done we'll marketplace seeing probably do before, to to a bit bit but better the talk XXXX on we have things think in -- seen the we're on I about some commented relative

Yes.

question. great Matt, think, a it's I

if portfolio of the have look we've in actually, we say and mix, the healthy had. NASD kind mix of would of I most we so details 'XX And than at the

a So through. been the number significant of we that to have increase in going are programs going

which actually forward. very the a versus bigger I commercial going well it's volume component think bodes clinical Now volume, future for of

some, that's seen associated with IRA that, think of as we have say, customers I some but transitory. We certain pausing would

our of really volume. all long-term portfolio, patient the actually come speaks mentioned, we're we which concerned targeted previous as many not prospects at expanding about talked So what seeing And we're are actually populations, growth portfolio And in said, much we're had Mike technologies. our Mike to then in larger as about this calls, the well our fact, of market. as the into that programs

having And siRNA, ability so business it's GMP the antisense. but not to our grow we're CRISPR continue CRISPR to as just well great as

continuing as well. we're that do So to

second. Sam, your be be jump thought have last for you it in a might for will call, would I to know interesting here this

of investment about transition, of the And you've your part we're long-term our talking a from key I growth story hearing continued As think lot customers. same to them been here.

Yes. Bob's now contract been. comments. just Absolutely, add ever things we on couple of promising. to One, are with And your very Mike. I'll have it's major a pharma and than we more

look at are R&D our now the of overall to just we with they've of budgets in in they're reaffirmed. If spoken weeks the opportunities. spending seat that alone, publicly and and And the of on a those their oligos, you therapeutic last number win partners, driver's couple I've lead percentage pharma

slight on the a position to unchanged and the IRA, remains their the navigation the leadership end conviction is in pursue that. through there of potential as mentioned, So market Bob

year? guys it. detail. of on business? gains Are certain as we that pricing what's of Maybe And of you, you the see Got back of pricing just to how think pricing over you areas sort Bob, in historically Or to have for year a your sort next amount next of as of has still about some achieved? embedded is levels kind there That's pricing? Kind great year normalized move trended for into this just, of of course pricing. we

that. full a actually And that's year under little at a Matt, was and X% than the for question. just we greater great QX the ended Yes.

plan than historical So be percentage as our points for very pre-COVID well. our know, which, hold into we're building actually continues is you year of X kind is it price, to What next up levels. of greater roughly

well. I of do, is well speaks as mix emerging we've our the -- that as think, really we value able have what to as the so to been proposition And businesses

go Vatnsdal to now JPMorgan. We next at Rachel

to first ask I China. just So off, on want

in XX% down with mentioned was the expectations. You that this is your That region line quarter.

to it next again expecting year. [indiscernible] You're decline

is of much So late to how to the do comps some really easier I continue anything with comp into versus that term? to next medium China function of there due lap the on that just a how and expect to long starting structurally grow guess, market? year that wrong you to And is

to it's... I Do you part, the want Bob, take think first

yes. Yes,

going XX% very and what I growth, as is, from extremely did you we I of half the expecting years. up strong QX as the in we against, similar think so this the we guide, I in see in mid-XXs we year. kind about and this comps, getting better we're XX% still QX we're had think standpoint first from well, So this at were up mentioned, would comparisons of of we this And of mean, to difficult the last rest of over looked in kind if the up declines the obviously, year, the year, what -- down down we're there. then year, of the X

see comp. Mike changing will little that, some talk Chinese in I'm a science bit we life this, easier don't structurally of more but be for And it about an marketplace tools. anything the will And sure

pick don't up Why there. Bob. from Absolutely,

market we specific So how for question, a I the when this then why the when And lot big And don't more short-term be R&D been X-year investments we all, this I improving are Chinese travel remarks. things long-term still just the They're of of occurring, to bouncing SG&A on that is could pointing being is, But what made things first plan. don't government's was return around growth. the the that's a you everywhere, XXXX stabilization China. They're big may which driving there the in optimistic area. over XX as few amazing. anybody about to quickly the first my spent in quality green, remind call it. all have primarily will Sciences. be But to uses markets anymore. well, I PFAS. comments may the in seen I I'll country, the of can we've look more to China. We're about growth. was BCIA cash it we're from remarks, do business remind I just how see, as this in think just pharma happen ultimately the Life too is a big lot digital hearing a actions Electric health and why to hearing long certain coming regs because environmental there'll expansion vehicles there market anticorruption the for economy level. was space the stories that The think China less is I also here's how did since of October this I eventually what the customers a along your from life which and term, prepared our and prepared have money to have which how impacts new seen in growth the because lead at country team trip of you with to show. in but And years, want peaked, adoption

near-term payer significant So expect at year-to-year improvements don't I a any think teams terms what the hearing but we're months our look significant comp potential that a why used deterioration and sense numbers was from expect either. think growth were you But we've near-term what stabilization. of run a probably just we're our certain had in And seeing, forecasting, -- couple level, what gives customers I of we and that's -- the what of we're signs when any us is that don't now at Bob, rate, issue.

hope I So helps. that

your next And then color. want a year. helpful that's more just little No, I around to comments dig on Yes. bit

So what in seeing you of half similar the to this mentioned that year. you expect the back to be half first you're

then And margins of revenue a Should that So I the a Or from well? EPS by trajectory really growth the what of about the you same standpoint. through more as type year. Should mean organic on kind expecting on cost dynamic expect an you guess, can in and us question more perspective? we detail exactly from similarities given bit you rebound are little talking ramp walk next of just we that? similar dollar be

Yes.

short I'll order, in -- answer if think try Rachel. to I that all

a was still mentioned our book-to-bill, than think half we then And and It our kind we of of less troughed continue better. and as was business than performance As about -- improve. that think of QX. continue. we X will yes, at to look at that, of actually QX the -- look that QX, little year, kind less we I we've first expectation think in that the is we kind

up QX in and happened And it. actually QX inventory. bleeding that particularly going about we're talking we we down were against our when Now comps were difficult of last as year

benefit QX, so our And growing compares. have trough of And then from expect and to the QX better of us little we easier be the would would expect I as being 'XX a the that out I will look EPS in we've have to P&L most have similar to of won't very that. QX, -- and all first the a been taken they we taken the but full quarter, actions they are in quarter.

QX. have the And through full quarters of cost in so savings we'll QX

and And that line. the more leverage so improves get of bottom on business as we'll business as improves, the more kind

Bruin to De now of on Bank Derik America. at Moving

bit the the are little of lot a that market to up a pharma. market of talk in right? Tha you year, and down looking loose all you Are we was of can starting at about forward? funnel mean, how So the of stuck some orders visibility. not going sort come sort I seeing pharma were

elongated. the think answer the I Yes, is funnel deal still remain

the that So our from closing elongated. see growing, the yes, to still that deals in static what think funnel we side from funnels is of point I is they're but order velocity -- on

single-digit year. Yes. And about pharma we low Derik, very market, for think end think next the assuming growth if I we're

'XX. in If think getting was as actually, we down actually business we grew past biopharma cycle. our some business well, in very small that is And molecule we in the looked a area business And pharma the that typically comps FY total. you grew China, of And actually pharma was about ex tougher replacement know that at the dragging our China. has

high. And that earnest will cycle. We half in our expectation 'XX. seen back kept start in of be probably that the in were very well We 'XX, that into We we've but depressed, replacement coming is are very calling it. and up back

visibility, bit up, why put So a things come like like still heavy, -- I'm feels Pharma, this I'm back. it have little just seems still back-end China a down. got it's that. not it's you can don't a you curious bit not basically goes but -- -- just cushion feels back said a sorry your cycle. it's like a have you the like -- beat little Well, not [indiscernible] -- guide, got little end. of this hope little to in going given more just you've it It a ton -- lot

Yes.

have know you year. small that that can held We only snapback -- in not think believe there's those half been. some where we up we working that saying continue I favor that to way, by the numbers XX% said [indiscernible] And also that's we're Derik, and there's for on we're reason want that know need R&D. [indiscernible] comps pressure they as products. long. know a the they've But I got think calling -- the this step markets be the miracle we in so decline XXXX. the cycles seeing the for earlier, our biopharma, particularly, interest to and replacement in customers second last XX%, for tools we're But only for has this

of now there's diversification thoughts the if the we lot the a I are don't there's Bob, have funnel. relative additional his And funnel. on a of particular, secular other aren't nice there's And of right we strength pharma commentary, confidence and applied focusing any which pharma side in we is some other story. know out in on So here markets, in to in the well. markets the as coming what instrument see on although Deals then

No.

one final And one. just

book-to-bill I in in but the I'm greater do mean, was got bookings. get QX curious X, in And of I were bookings. terms a -- you you I'm Basically, spike often like of just what know just to trying you see said the as or Just sense demand got than here? you fake you've real head saw bookings think where you've a what

Yes.

then a were So we X. higher. to it than we was -- rather for higher. greater roughly is company Typically, was X do It than where and see it say don't give instruments dollars the total the absolute

kind of our our in October results. back historical have this of because particularly a goes we performance higher, where kind little So to are orders

as to And and speak, down back normal our the so we're aberration, actually last working to year of was backlog so gets an process. kind this

we Yes. Derik, saw a And the seasonality. through normal quarter,

of So order anything this pattern the about not. head kind there say, wasn't or fake unusual is to a

So I stabilization growth. We're signs that reasons some why the huge one think seeing early stabilization. of say, is here. also not Again, we of okay,

at Nephron Meehan to Research. now next Jack We'll go

and wanted any LSAG quarter. more across instruments just and Can to dig growth break a between lines. the I product in So bit into down little the consumables you commentary

say than better would performed pressured, for instrumentation. although quarter the I Everything consumables was the

against ex low low that digits of down if single at you and grew China, consumables. was XX%. we single was of tough business influenced comp it looked by a very consumables Our China, almost in X%, largely digits kind And

Okay.

does so over imply instruments be quarter? the And XX% down may that in

were yes. They down,

maybe I just on a guess follow And Derik's Okay. Yes. up question.

just down I to color this way quarter? the orders on of was you I an is trying easy mathematically the a similar is comp everybody X, were more commentary, difficult orders there trying right have there volatility. been about book-to-bill revenue like guess, understand share can additional Or to are the -- on just to of interpret kind right? think a in or any think over but have because don't It should magnitude level

Yes.

the much not as as So year-on-year. year-on-year, orders were down obviously but down down revenue

stabilization because I it, kind in pretty had though, at thing And shutdown. of Shanghai significant first so think that year when we some of revenue the the last look recovery shows we the because

best at on the the to it of look basis because don't we that the don't kind anymore. think think this backlog I of way -- happening play have we that that, go-forward much a actually So is

steady And so historical look a progression actually, as on seen nice, a we quarterly back numbers. at it to we've up basis,

we've for some half. for for as year environment. we that slower And And we're second was fair one been no actually lot things a capital of how came of of Bob, being commentary into the guiding in think getting you the say, know, flush, were about the terms We to calling out it's constrained worse. a time, growth budget Jack, significantly I conscious year-end things in

last today the listen, the was listen, So sky point falling the intimate also we're of book-to-bill, not [indiscernible] thought robust for trying several saying a in been call great I proof thought terms what is seeing the either. to is right not but we're what And quarters there what exactly now. it's in is out we've we growth,

Leerink now to Souda next Partners. at The Puneet

you sort the contracts, for And of [ expectation for on elaborate know contribution business a with here of well? provided what I we service Bob, one First growth on year? your full also, being CrossLab could LSAG contribution XX% expect ]. XXXX don't you as if should

Yes.

pressured mid-single-digit -- being For we instrumentation. double the ACG, the by of are kind with but services digit, contracted we're then being as growth expecting piece

And kind be year better the of will of first return low single-digit in and that with at moderated. business, So half now, right half of second the the looking for the decline. year. the Again, a LSAG the we're decline in greater performance to

Got it.

if -- on more you why could onshoring XXXX. the And that's growth on instrumentation calls. both as I shouldn't And PFAS having? -- could bit gains to side, you're some then we I little that's that that elaborate not but you're pointing something that you wondered And on focused you're your are Okay. -- on as hear growing a ask that a environmental in bit just on I little onshoring contribute well point am in prior the

macro that. nothing in to investments and the about the the that as we're It in do business incentives And continue we That's of are now build environment it, where expect to the there's beginning the that India. well. right we year, that same But should at the that environmental has doesn't prudent continue all to not well incremental we're economic in Asia there we're expect potential area drive there. year. providing the Southeast talked But that that, as the say I at nice and of as thing of would what beginning Yes. and demand. continue governments going And out to And the want is actually, so we're given as to continue. seeing that would invest. I to be capture placing to to

reg. further marketplace was starting is as some pretty as own of But driving country trends we're we saw talk that every enhancing we which the I some well that too to also think in the to see, food testing their now process in is fast

around of to other some So company we the beyond pharma. for wanted have story the potential growth areas

go We'll Cleveland next now at to Research. Josh Waldman

take you're you like a the question, I provide that were process you to the guide the back, step takes slowing and And round wondered on where if trying puts then the did in areas into or context segments decelerating guide. more Bob, Bob Derik's and guide? you could were this forecasting Could one organic that in bottom? the expect into circling on or for for went Mike. back maybe maybe how the one Maybe that there if still went find or you business so, as

terms been one the ages in this to able Obviously, the manage being year Yes. of try to has forecasting. for

And different at to a taken at so of it look angles we've it. number

we've to would feedback are stopped and I'm And that's of are modest over we're at which in around we I it's And kind that at see based rates, stabilization is probably the on here, the we elongation. of a stabilization. accelerated of I think Mike funnels. last to but we that we the the looking growth you're you tried of basis, say those more that if that see look orders starting slowing and haven't only at the conversion to of that we've And see inventory. the on think takes seen not seen to as and a we signs think saying instructive, talked the field's also particularly that bill. that. sequential starting then in slowing that down. the what terms the as couple the always sequential seeing in is on when the that There that businesses. assumption bleeding dollars, funnel of looked but the look So focus slow basis an actual built of I it we're growth, quarters the or purchase do Padraig still starting funnels projections, to were actually puts well. at and and not and book about across We've various actually the There's

challenging the looking Hopefully, better second of start at to half And that gives first in and flavor. you going just kind how of built next some half. forward. you would performance continuing into we're so that's kind you then that year, go seeing a if

maybe I it could if And actually And And quantify or you be Yes, how through is my Mike, don't year? correlative you know, where the where better take a was entering follow-up. going maybe is if you curious that's of versus entering 'XX stands was is kind improvement just as typically to all predictor want Bob maybe of I progress the helpful. part I funnel that to do conversion at of is you mean -- or think that much the funnel it the demand? how drives what near-term it. year?

] Versum no same right, and of [ Padraig Bob improvement. I significant rates, think kind the

first going year, actually, of you those the elongation of We're up against was half the what times. this Correct. saw cycle --

we're what and decline quarters necessarily so like I is kind right year. but last And we or rate -- now increasing stable, not saw it's seeing the it's not that said, -- the fully of of second at first in

starting you're so that. And to see

year ago. slightly improving forward. back actually conversion so not all is handicap versus here to a trying we as still And that's our And at going being numbers. that to It's what things equal, look forecast historical we're

We'll Brennan Cowen. go next now at to Daniel

the the just I on pacing quarter. think, improved prepared you had in like remarks month-to-month I China. Maybe mentioned, in Great. know

China. interesting China. an trends could any color color I some And rates like Just on be know to some on get biopharma, the discuss anything or more other in color basis? color you could, any end from you pharma on you end market and entered overall market gave exit in if more but I'd

book, with we've our slowdown. China. on know our Sure. were will and line for no conversation the been, which the been expectations think the that I but -- market were saying pharma, for has calling I we in Bob, some maybe pleased team been to for unusual the in what I the we'll has end of been that's quarters through of today was a revenue quarter were broad-based above the we say lot think we And order we this, that a about tag ended year quarter. really business. it's for the from -- how I China, that's overall terms pacing business We've the performance. relative been slightly

the was at earlier described that certain along we again, a So business overall level. moving

we're do right be seeing have that business of down still in now. for revenue reflective where of a terms the are, China but the think I the we we will of year. we view where

So.

data Dan, a Mike's pretty were and of because we additional to up QX, we just build in markets you QX couple all XX% end of expect points. down 'XX. as in point, on other were in significantly would

the And catching Shanghai up because not to the some so relative that's as of probably we were relevant of shutdown. catch-up

Another though, of growth year-on-year at if actually, beginning at a the kind looked saw than is much was but October, it year-on-year data was point, the what still we decline, of we performance. the we exited quarter. It better

And sequential so improvement. we a saw actually

I kind that in then monthly. pretty And remarks. we think dollars, of been if Mike absolute looked mentioned at steady they've prepared his

and Chemical And like lot was It the cities. PFAS. Advanced said you like a Material was of looks you and it. Got a quarter, XX% about C&E X down tale then in talked

in and sides the for any year kind there? [indiscernible] both seeing baked just still sounds it there color remain the guys kind of constructive the Materials so what you then chemical you're or like And on anything more energy like there? Applied of is And side What's really side on core trends and on on main obviously, of

for is area I breakout expertise in is really you pull both Materials appropriate, seen about the by dying here of And a Bob maybe of on Advanced of lead in about fill X terms side, cities comments. few geography. to segment And were himself. quite how which But by things here been of talk some think real on So then as he's tail well. a also I've the

posted think China correctly, growth, XX% I we remember last in I year. if

are. comp. mean on care But I So a we're side. you seeing tough slowness C&E I don't who continued that's the

here their of in capital. terms customers customers on major are of Many cost deployment our are Our largest of really control. conservative

you're outside good know story whole your The and what you a growth but of think then to the And on the we're that's I while. initiatives opportunity team Advanced introduce and numbers, you of doing you particularly Materials markets, the applied China. And we Advanced the the Materials. what the -- and on me [indiscernible] of thought side. share a you in bunch PFAS around pointed to I a expect I applied and a seeing business have on for on outlook got the audience perspective why constrained been side. Bob, Phil, the different that's on for good reflected Materials, globally geographically that's So that to Advanced

Mike. strong in ex Materials being Advanced Yes, market the at course, certainly side talked you've Yes. we've Materials. Thanks, around certainly those area. seeing good activity batteries good generation in market. the around markets, onshoring and about certainly, we've Advanced of least spoken mentioned the there robust. within we're relatively applied process really being around and on around China, the labs And We're But reasonably the

close continue So globally, into and globally, obviously customers. in stay comes we're in those that into positions the to and those the those innovate onshoring. And strong strongly to markets markets have historically around and been

Dan at Leonard We to go UBS. now next

the guide. moment QX back for circle I wanted on to a

You thinking of times. ramp seasonality But forecasted QX if spoke of is you about could that couple decline chalk sequential a a you're versus prudent challenging QX much what up how us to comp you the year-on-year a about in as to give dollars, flavor.

question, Bob. Great

that's Dan, Yes, question. great a

if you guide, down also $XXX you from $XX million. it's look year QX $XXX roughly an extremely over went If look $XX very the strong the at of midpoint million, little a at -- million, revenue last our strong to a million, and $XX million

again, guide to at we were looking that I year, give percent, out last a we want an QX in to of not to QX element what we about don't year. did of kind kind saw parse gives assuming So how there is of last what kind thinking relative a it budget. of you but strong the least you at of

Appreciate genomics the we that. on genomics can part And of XXXX, lap as you the me then appetite in a do side? in the DGG follow-up, when investment And what remind continued portfolio. is your as headwinds

have some expect would from the beyond, the better get to I'll of of about then -- and then the Yes, talk difficult QX the let and dissimilar businesses. us investment. from we not a starting rest of I will to QX Mike And kind

the about to talking remind it the are probably here, instrumentation, of to business, Yes, a I We we XX% genomics a talk are $XXX here. the audience, just we when what first invest think lot million of all, is about? of mix we business, in QA/QC got where undisputed leader appetite

believe tape is now. the on business. [ as think people in right in across back business NGS the I side industry, it marketplace. continue that for for seen we've growth the all about I market ] fire their the Capital that are Station then Our view think us. particularly on to consumables And is how product, time. will I and constrained a of be think for period And seeing dying robust a our that is we're we expectations

why of we investing healthy while same got some the the to in ability P&L a that we we make have So at in want point we've time changes portfolio the ensure do because to structure made growth. the in

some dollars there's R&D made about as of the of a that call. reallocation a over we we the So changes of result talked happening

areas appetite think of So genomics. a for win investments can we answer have we in is focused we the in where lot story

And for to we things this closing afternoon. the to questions turn Ahuja time for gentlemen, any all have back Mr. you I'd that is ladies comments. and like

Have thanks, good to today. call. would that, day, like for everyone. and end call With Bob, we a the Thanks, everyone, the joining

thanks you. Thank a conclude Goodbye. and that all Agilent XXXX wish Earnings we evening. ladies you great will gentlemen, Call. Again, joining the Again, for Technologies us, and QX