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Santa Rosa, California-based Keysight Technologies, Inc. (KEYS) provides a comprehensive portfolio of hardware, software, and services that support the design, emulation, and testing of electronic systems. Valued at a market cap of $24.9 billion, its solutions cater to a diverse range of industries, including telecommunications, aerospace and defense, automotive, energy, semiconductor, and general electronics.
KEYS is scheduled to release its fiscal Q2 earnings results on Monday, May 19. Ahead of this event, analysts expect the software company to report a profit of $1.40 per share, up 12.9% from $1.24 per share in the year-ago quarter. The company has beaten Wall Street's earnings estimates in all of the last four quarters, which is admirable.
For fiscal 2025, analysts expect KEYS to report an EPS of $6.05, up 11.2% from $5.44 in fiscal 2024.
Shares of KEYS have plunged 3.1% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 8.4% rise and the Technology Select Sector SPDR Fund’s (XLK) 4.2% return over the same time frame.
On Feb. 25, Keysight reported first-quarter earnings, and its shares dropped nearly 7% in the next trading session. It reported revenue of $1.30 billion, marking a 3% increase from the same period in 2024. The company's non-GAAP net income rose to $317 million, or $1.82 per share, surpassing analyst expectations of $1.69 per share.
But, orders in Q1 came in at $1.26 billion, missing the Street’s forecast of $1.30 billion. Adding to the disappointment, Keysight issued cautious guidance for Q2, with revenue projected between $1.27 billion and $1.29 billion and earnings per share expected in the range of $1.61 to $1.67, both trailing analyst expectations, which weighed on the stock.
On the upside, Wall Street analysts are highly optimistic about Keysight Technologies’ stock, with a "Strong Buy" rating overall. Among 11 analysts covering the stock, nine recommend "Strong Buy," one suggests a “Moderate Buy,” and one indicates a “Moderate Sell” rating.
The average price target for KEYS is $181.40, which indicates a modest 26% potential upside from the current levels.
On the date of publication, Kritika Sarmah 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.
