Keysight Technologies Faces Earnings Report Amid Mixed Analyst Sentiment

Santa Rosa, California’s Keysight Technologies, Inc. (KEYS) specializes in electronic design and testing solutions across various sectors, including communications, aerospace, and automotive. With a market cap of $27.2 billion, the company provides measurement services using innovative wireless and software technologies. Keysight is set to report its fiscal fourth-quarter earnings for 2024 on Monday, Nov. 18.

Expected Earnings and Recent Performance

Analysts predict KEYS will announce a profit of $1.41 per share, which marks a decline of 23.8% from last year’s $1.85 per share. Historically, Keysight has surpassed expectations in three of the last four quarters while underperforming once.

Full-Year Forecast

For the entire fiscal year, analysts anticipate KEYS will report earnings per share (EPS) of $5.43, a decrease of 28.3% compared to $7.57 in fiscal 2023. However, forecasts are brighter for fiscal 2025, with expectations for EPS to rise by 12.9% to $6.13.

Stock Performance and Market Context

In the past year, KEYS stock has not kept pace with the S&P 500 index, which gained 38.7%. In comparison, Keysight shares increased by 29.5%. The company also lagged behind the Technology Select Sector SPDR Fund (XLK), which rose by 41% in the same period.

Challenges and Revenue Outlook

Keysight Technologies has recently encountered difficulties, primarily due to decreased demand from wireless carriers and a decline in orders from China. This has impacted revenue growth and profit margins negatively.

On Aug. 20, KEYS disclosed its Q3 results, with shares jumping over 12% in the next trading day. The reported revenue stood at $1.2 billion, down 11.6% year over year, while adjusted EPS fell by 28.3% to $1.57. Looking toward Q4, the company anticipates revenue between $1.2 billion to $1.3 billion, with adjusted EPS expected in the range of $1.53 to $1.59.

Analyst Recommendations

The consensus among analysts regarding KEYS stock is moderately optimistic, holding an overall “Moderate Buy” rating. Out of 12 analysts, eight recommend a “Strong Buy,” one favors a “Moderate Buy,” two suggest a “Hold,” and one indicates a “Moderate Sell.” On average, analysts set a price target of $169 for KEYS, suggesting an upside potential of 8.3% from current levels.

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On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.