Agilent Technologies (A) expects its ACG (Agilent CrossLab Group) and DGG (Diagnostics and Genomics Group) revenue momentum to be similar in the first and second halves of fiscal 2019. In the second quarter, instruments accounted for 40% of Agilent’s total revenue, while consumables, services, and informatics accounted for 60%. Analytical laboratories accounted for 84% of the company’s revenue in the second quarter, whereas diagnostics and clinical accounted for only 16%. The company earned 35% of its revenue from the Americas, while Europe and the Asia-Pacific region contributed 29% and 36% of its total revenue, respectively.
In the second quarter, Agilent’s ACG operating margin expanded 270 basis points to 25.2%. In its second-quarter conference call, Agilent stated that when the capital replacement cycle slows down, services are used more to extend equipment’s life. This trend, along wiith strong testing volumes across end markets, is expected to drive Agilent’s ACG revenue growth in fiscal 2019.
In the second quarter, Agilent’s ACG revenue grew by a mid-teen percentage YoY in China. The company attributed this growth to its strategy of leveraging its broad instrument installed base, penetrating emerging cities, and customizing its services to local markets.
In the second quarter, Agilent’s DGG operating margin narrowed by 60 basis points to 19.3%. The segment grew solidly in the Americas due to demand for the company’s pathology, companion diagnostic, and antibody offerings. In the second quarter, the company’s NASD (Nucleic Acid Solutions Division) revenue grew by a mid-teen percentage YoY.