Latest news with #Keysight
Yahoo
2 days ago
- Business
- Yahoo
Keysight Technologies, Inc. (KEYS): A Bull Case Theory
We came across a bullish thesis on Keysight Technologies, Inc. (KEYS) on Best Anchor Stocks' Substack. In this article, we will summarize the bulls' thesis on KEYS. Keysight Technologies, Inc. (KEYS)'s share was trading at $161.74 as of 22nd May. KEYS's trailing and forward P/E were 37.97 and 23.09 respectively according to Yahoo Finance. A team of engineers analyzing electronic components in a modern laboratory. Keysight Technologies delivered a standout quarter, outperforming expectations despite macroeconomic headwinds and customer CapEx volatility. Unlike many firms, Keysight benefits from exposure to strategic rather than discretionary CapEx, allowing it to defy typical cyclicality. This quarter marked the second consecutive quarter of growth, confirming the recovery is well underway. Strength was broad-based, with both its Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) growing—EISG's first revenue increase after six quarters of declines. While gross margins contracted due to a $7 million tariff impact and an unfavorable sales mix—software sales dropped as a share of revenue—operating leverage was robust, with GAAP operating income rising 17% on 7% revenue growth. The gross margin dip was purely optical, as the revenue mix naturally shifts during cyclical recoveries. GAAP net income and cash flows were boosted by non-recurring items including a $112 million other income gain and a $60 million hedging windfall from the Spirent acquisition, which are not expected to recur. Management raised full-year revenue growth guidance from 5% to 6%, with EPS growth exceeding 10%, even with tariffs—an impressive feat given Keysight's long-standing guidance conservatism. Future upside exists from the Spirent and Ansys/Synopsys acquisitions, expected to enhance gross margins and expand software exposure. Though share repurchases may slow due to acquisitions, the company's strong cash generation supports ongoing buybacks. Tariffs remain a concern but are manageable due to a diversified supply chain. Meanwhile, strength in the European defense sector offers another tailwind. Overall, Keysight remains a compelling investment with strong execution, resilient demand, and attractive long-term prospects. Keysight Technologies, Inc. (KEYS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held KEYS at the end of the fourth quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of KEYS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KEYS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Synopsys Gets Conditional FTC Green Light on $34 Billion Deal
Chip-design company Synopsys Inc. won approval from the Federal Trade Commission for its planned $34 billion buyout of software developer Ansys Inc. after agreeing to sell assets. According to the FTC, Synopsys will sell optical and photonic software tools to Keysight Technologies Inc., an electronics testing and measurement company. Ansys will also sell a power consumption analysis product to Keysight.
Time of India
21-05-2025
- Automotive
- Time of India
Keysight beats second-quarter estimates on strong demand in its communication business
Electronic equipment maker Keysight Technologies beat Wall Street expectations for second-quarter revenue and profit on Tuesday, driven by strong sales in its communications segment, sending its shares up 5% after the bell. Keysight, is a provider of electronic design, testing and software products, among other equipment. These products are used for research, development and manufacturing by companies in the aerospace, semiconductor, automotive and related industries. On an adjusted basis, the company reported per-share earnings of $1.70, compared to the consensus estimate of $1.65, according to data compiled by LSEG. The company saw strong sales for its communications equipment from both commercial customers and clients in aerospace, defense and government sectors, with segment sales reaching $913 million, up 9% from last year. The Santa Rosa, California-based company also reported 5% increase in quarterly revenue to $393 million in its electronic industrial business, helped by artificial intelligence-powered demand from semiconductor and general electronics companies. This growth offset weakness in automotive demand, as the company faced ongoing challenges from muted R&D activity in EV battery development . Keysight also raised its full-year revenue growth target to the midpoint of its long-term range of 5% to 7%, compared to a previous forecast at the lower end of that range. Total revenue for the quarter rose 7.4%, reaching $1.31 billion, compared to analysts' estimates of $1.28 billion.
Yahoo
21-05-2025
- Business
- Yahoo
Here's What Key Metrics Tell Us About Keysight (KEYS) Q2 Earnings
For the quarter ended April 2025, Keysight (KEYS) reported revenue of $1.32 billion, up 8% over the same period last year. EPS came in at $1.70, compared to $1.41 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.28 billion, representing a surprise of +2.85%. The company delivered an EPS surprise of +3.66%, with the consensus EPS estimate being $1.64. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Keysight performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Communications Solutions Group: $913 million compared to the $884.15 million average estimate based on three analysts. The reported number represents a change of +8.7% year over year. Revenue- Commercial Communications: $612 million versus $588.52 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change. Revenue- Aerospace, Defense & Government: $301 million versus $295.62 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change. Revenue- Electronic Industrial Solutions Group: $393 million versus $395.34 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.5% change. Income from operations- Electronic Industrial Solutions Group: $92 million versus $81.74 million estimated by three analysts on average. Income from operations- Communications Solutions Group: $236 million versus the three-analyst average estimate of $238.62 million. View all Key Company Metrics for Keysight here>>>Shares of Keysight have returned +23.4% over the past month versus the Zacks S&P 500 composite's +13.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Keysight (KEYS) Surpasses Q2 Earnings and Revenue Estimates
Keysight (KEYS) came out with quarterly earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.66%. A quarter ago, it was expected that this electronic measurement technology company would post earnings of $1.69 per share when it actually produced earnings of $1.82, delivering a surprise of 7.69%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Keysight , which belongs to the Zacks Electronics - Measuring Instruments industry, posted revenues of $1.32 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.85%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Keysight shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 1.4%. While Keysight has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Keysight: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.70 on $1.3 billion in revenues for the coming quarter and $7.05 on $5.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Measuring Instruments is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, HP (HPQ), has yet to report results for the quarter ended April 2025. The results are expected to be released on May 28. This personal computer and printer maker is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of -2.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HP's revenues are expected to be $13.36 billion, up 4.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
