Agilent Technologies reported after the close of the market on Monday that its fourth quarter revenues grew 9 percent year over year.

For the three months ended Oct. 31, the life sciences company said total revenues rose to $1.29 billion from $1.19 billion in Q4 2017, beating the analysts' average estimate of $1.25 billion. Core revenues also rose 9 percent.

Revenues from the CrossLab Group rose 9 percent to $441.0 million from $404.0 million the previous year; Diagnostics and Genomics Group revenues rose 9 percent to $256.0 million from $235.0 million; and revenues from the firm's Life Sciences and Applied Markets Group rose 8 percent to $597.0 million from $550.0 million in the prior-year period.

Agilent said that the strength in the Life Sciences and Applied Markets Group was broad, across all major end markets, platforms, and regions, particularly in mass spec, chromatography, and cell analysis products. Growth was strong in both services and consumables in the CrossLab segment. Growth in the Diagnostics and Genomics business was led by sales in the pharma end market and strong demand for genomics and nucleic acids solutions products.

"The Agilent team delivered an outstanding quarter to wrap up the fiscal year with revenues and earnings per share ahead of expectations. Our performance this quarter caps off an excellent 2018 as we achieved our highest annual core growth rate and profitability since becoming a standalone life sciences company in 2014," Agilent President and CEO Mike McMullen said in a statement. "During the quarter, we continued our investment in growth introducing new and differentiated products and services. We leveraged our strong balance sheet completing several acquisitions to further strengthen our portfolio. We also returned over $600 million to shareholders through stock buybacks and dividends this year."

Agilent also announced that its board has approved a new share repurchase program authorizing the purchase of up to $1.75 billion of common stock. The program will begin on Nov. 21, and the number of shares to be repurchased and the timing of any repurchases will depend on factors such as the share price, economic and market conditions, and corporate and regulatory requirements.

On a call with analysts following the release of the earnings, McMullen noted that overall revenues were bolstered by double-digit growth in the pharma and environmental forensics end markets, along with continued strength in the firm's chemical energy business. Geographically, he added, Agilent's China business was up 16 percent for the quarter, and the company achieved double-digit growth in China for the year.

CFO Robert McMahon further added that pharma continues to be the company's largest end market, growing 14 percent in the fourth quarter. "Traditional areas of strength, as well as newer areas of strategic focus such as cell analysis, and a strong performance [in the Nucleic Acid Solutions Division] contributed to the results," he said.

Chemical and energy grew 7 percent, and environmental and forensics grew 17 percent. Academia and government reported 10 percent growth as the funding environment stabilized, while diagnostics and clinical grew 1 percent and food was flat, McMahon noted. In countries other than China, the rest of Asia and Japan grew by 12 percent, and Europe and the Americas saw growth in the mid-single digits.

"In addition, we continue to be pleased with the revenue contribution as non-instrument revenue contributed 56 percent of the total in Q4," McMahon said. "Looking forward, we see non-instrument revenue growth outpacing instrumentation driving an increasingly recurring revenue stream."

The firm's Q4 net income rose to $195.0 million, or $.61 per share, from $177.0 million, or $.54 per share, a year earlier. On an adjusted basis, Agilent reported EPS of $.81.

Agilent's R&D expenses for the quarter rose 17 percent to $104.0 million from $89.0 million in Q4 2017, and its SG&A costs rose 10 percent to $356.0 million from $325.0 million in the prior-year quarter.

For full-year 2018, Agilent said total revenues rose 10 percent to $4.91 billion from $4.47 billion in 2017, beating the analysts' average estimate of $4.87 billion. Core revenues also rose 7 percent.

Revenues from the CrossLab Group rose 11 percent to $1.70 billion from $1.53 billion the previous year; Diagnostics and Genomics Group revenues rose 10 percent to $943.0 million from $860.0 million; and revenues from the firm's Life Sciences and Applied Markets Group rose 9 percent to $2.27 billion from $2.08 billion in the prior year.

The firm's 2018 net income shrank to $316.0 million, or $.97 per share, from $684.0 million, or $2.10 per share, a year earlier. On an adjusted basis, Agilent reported EPS of $2.79, beating the Wall Street estimate of $2.72 per share.

Agilent's R&D expenses for the year rose 14 percent to $385.0 million from $339.0 million in 2017, and its SG&A costs rose 11 percent to $1.37 billion from $1.23 billion in the prior year.

The company ended the year with $2.25 billion in cash and cash equivalents.

For fiscal year 2019, Agilent expects revenues of $5.13 billion to $5.17 billion and adjusted earnings of $3.00 to $3.05 per share. For the first quarter, the company expects revenues of $1.27 billion to $1.28 billion and adjusted earnings of $.71 to $.73 per share. Analysts are expecting 2019 revenues of $5.18 billion and EPS of $2.96, and Q1 revenues of $1.27 billion and EPS of $.72.

On the call, McMahon also said that the company anticipates that currency will be a headwind in 2019. "Based on exchange rates as of the end of October, we expect currency will reduce reported sales growth in 2019 by roughly 220 basis points translating into roughly $110 million negative impact for the full year. For comparison, our 2018 reported sales growth benefited by 210 basis points from currencies," he added, though he noted that a larger contribution from recent M&A deals will partially offset the currency impact.

The company will also continue to look for acquisitions like the ACEA Biosciences tuck-in, and has the financial flexibility to be opportunistic in share buybacks as well, according to McMahon.