Keysight Technologies Poised for Continued Growth as Q1 Earnings Approach
Santa Rosa, California-based Keysight Technologies, Inc. (KEYS) specializes in electronic design and testing solutions across various sectors such as communications, networking, aerospace, and automotive. With a market capitalization of $28.7 billion, the company is set to unveil its fiscal Q1 earnings results on Tuesday, February 18.
Q1 Earnings Expectations and Historical Performance
Analysts project that Keysight will report earnings of $1.49 per share, representing an increase of 11.2% from $1.34 per share in the same quarter last year. The company has successfully exceeded Wall Street’s earnings forecasts in three of the last four quarters, although it did miss estimates once. In the fourth quarter of 2024, Keysight impressed with an EPS of $1.50, surpassing consensus estimates by 6.4%.
Forecast for Fiscal Year 2025
Looking ahead to fiscal 2025, the consensus estimate anticipates an EPS of $6.51, a notable rise of 19.7% from the $5.44 reported in fiscal 2024.
Performance Compared to Indexes
Over the past year, KEYS shares have appreciated by 10.6%. However, this performance falls short compared to the S&P 500 Index’s ($SPX) 26.5% rise, and the Technology Select Sector SPDR Fund’s (XLK) 22.1% increase during the same period.
Analysts React to Recent Earnings Release
The day after the Q4 earnings announcement on November 19, Keysight’s stock soared by 8.8%. The company reported robust adjusted earnings of $1.65 per share and total revenues of $1.3 billion, despite experiencing a 1.5% decline in revenue and a 17.1% drop in earnings compared to the previous year. Analysts point to a 1.4% increase in year-over-year orders and 8% sequential growth, driven by advancements in AI and solid bookings in the US aerospace, defense, and government sectors, as factors boosting investor confidence.
Analyst Ratings and Price Target
On Wall Street, sentiment for Keysight Technologies remains highly favorable. The stock carries an overall “Strong Buy” rating, with nine of the 11 analysts recommending “Strong Buy.” One analyst suggests a “Moderate Buy,” while another recommends a “Moderate Sell.” This optimism marks an improvement from three months ago when only seven analysts had a “Strong Buy” rating.
The average price target for KEYS is set at $181.50, indicating a potential upside of 9.5% from its current trading levels.
On the date of publication,
Neharika Jain
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
