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Will Higher Revenues Benefit Keysight (KEYS) Q1 Earnings?
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Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report first-quarter fiscal 2023 results on Feb 21 after market close. In the last reported quarter, the company delivered an earnings surprise of 7.5%. It pulled off a trailing four-quarter earnings surprise of 8.6%, on average. The Santa Rosa, CA-based electronic design company is expected to have recorded year-over-year higher revenues driven by robust demand for its electronic design and test solutions combined with a strong 5G portfolio.
Factors at Play
In the fiscal first quarter, Keysight collaborated with Qualcomm to improve and support broadband connectivity in remote areas by developing end-to-end 5G non-terrestrial network (“NTN”) communication. NTNs based on 5G satellite-to-ground communication provide remote locations lacking terrestrial network coverage with safe, dependable, and high bandwidth access. Successful implementation of 5G NTN will assist rural populations in uplifting their standard of living and boost the economy of industries like agriculture, energy, transportation and health care.
Keysight also collaborated with TEVET, a test and measurement solutions provider for defense industries, to provide real-time signal analysis for electromagnetic spectrum operations. TEVET is looking to utilize KEYS high-performance solutions to expand the capabilities for threat detection and enhanced situational awareness with real-time, seamless bandwidth monitoring over wide bandwidths of more than 1 GHz at higher frequencies in a small form factor. Such collaborations are likely to be reflected in the upcoming results.
In the to-be-reported quarter, Keysight introduced Electrical Performance Scan (EP-Scan) to enhance the efficiency of hardware engineers by removing the bottlenecks in the design cycle. EP-Scan is a high-speed digital simulation tool that will enrich engineers with information related to design inconsistencies, layout issues and signal integrity insights. It will allow engineers to perform quick diagnostics and empower them to automate routine tests, ultimately shortening time to market and led to more design wins. The move is likely to have contributed to top-line growth in the quarter.
During the quarter, Keysight announced collaboration with Synergy Design Technologies to advance the development of 5G Open Radio Access Network (O-RAN) and Virtualized Radio Access Network (vRAN) infrastructures. Synergy will construct a network test environment using Keysight's P8800S UE Emulation RAN (UeSIM) and P8822S UE/O-RU Emulation over the O-RAN Fronthaul (RuSIM) technologies for the development and troubleshooting of its software-based 5G Smart RAN solution. Company's O-RAN solutions are in high demand, which is expected to have improved top-line performance.
In the fiscal first quarter, Keysight partnered with MediaTek to establish 5G connection based on 3GPP Release 17 and RedCap Technology. MediaTek aims to accelerate the deployment of the latest 5G technology by utilizing Keysight's 5G Network Emulation Solutions on its 5G chipsets. During the quarter, Nokia also selected Keysight’s sub-Terahertz (THz) test bed to validate the performance of 5G advanced and 6G transceiver (TRX) modules. Nokia relies on Keysight’s validation and optimization solutions to advance the research and development in 5G advanced and 6G communications. These are likely to have translated into higher revenues in the quarter.
During the to-be-reported quarter, Keysight announced that Altium LLC licensed its advanced electromagnetic simulation technology to develop power analysis solutions for PCB designers. The Power Analyzer solution will provide interactive analysis of power integrity issues with its modern graphical user interface to make power analysis fast, accurate, and easy to run. PCB designers using Power Analyzer will gain insight into their power plane performance through analysis of voltage drop and current density from within their PCB layout environment. This is likely to have had a positive impact on the company’s first-quarter earnings.
However, the sluggish demand environment in China, supply chain headwinds and geopolitical and macroeconomic volatility remain concerns for the company’s growth prospects.
For the January quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,370 million, which indicates growth of 9.6% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $1.85, suggesting an increase from the prior year’s figure of $1.65.
Earnings Whispers
Our proven model does not predict an earnings beat for Keysight in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.65%, with the former pegged at $1.84 and the latter at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for NICE Systems Ltd. (NICE - Free Report) is +1.98% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 23.
The Earnings ESP for BeiGene (BGNE - Free Report) is +4.19% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 24.
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Will Higher Revenues Benefit Keysight (KEYS) Q1 Earnings?
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report first-quarter fiscal 2023 results on Feb 21 after market close. In the last reported quarter, the company delivered an earnings surprise of 7.5%. It pulled off a trailing four-quarter earnings surprise of 8.6%, on average. The Santa Rosa, CA-based electronic design company is expected to have recorded year-over-year higher revenues driven by robust demand for its electronic design and test solutions combined with a strong 5G portfolio.
Factors at Play
In the fiscal first quarter, Keysight collaborated with Qualcomm to improve and support broadband connectivity in remote areas by developing end-to-end 5G non-terrestrial network (“NTN”) communication. NTNs based on 5G satellite-to-ground communication provide remote locations lacking terrestrial network coverage with safe, dependable, and high bandwidth access. Successful implementation of 5G NTN will assist rural populations in uplifting their standard of living and boost the economy of industries like agriculture, energy, transportation and health care.
Keysight also collaborated with TEVET, a test and measurement solutions provider for defense industries, to provide real-time signal analysis for electromagnetic spectrum operations. TEVET is looking to utilize KEYS high-performance solutions to expand the capabilities for threat detection and enhanced situational awareness with real-time, seamless bandwidth monitoring over wide bandwidths of more than 1 GHz at higher frequencies in a small form factor. Such collaborations are likely to be reflected in the upcoming results.
In the to-be-reported quarter, Keysight introduced Electrical Performance Scan (EP-Scan) to enhance the efficiency of hardware engineers by removing the bottlenecks in the design cycle. EP-Scan is a high-speed digital simulation tool that will enrich engineers with information related to design inconsistencies, layout issues and signal integrity insights. It will allow engineers to perform quick diagnostics and empower them to automate routine tests, ultimately shortening time to market and led to more design wins. The move is likely to have contributed to top-line growth in the quarter.
During the quarter, Keysight announced collaboration with Synergy Design Technologies to advance the development of 5G Open Radio Access Network (O-RAN) and Virtualized Radio Access Network (vRAN) infrastructures. Synergy will construct a network test environment using Keysight's P8800S UE Emulation RAN (UeSIM) and P8822S UE/O-RU Emulation over the O-RAN Fronthaul (RuSIM) technologies for the development and troubleshooting of its software-based 5G Smart RAN solution. Company's O-RAN solutions are in high demand, which is expected to have improved top-line performance.
In the fiscal first quarter, Keysight partnered with MediaTek to establish 5G connection based on 3GPP Release 17 and RedCap Technology. MediaTek aims to accelerate the deployment of the latest 5G technology by utilizing Keysight's 5G Network Emulation Solutions on its 5G chipsets. During the quarter, Nokia also selected Keysight’s sub-Terahertz (THz) test bed to validate the performance of 5G advanced and 6G transceiver (TRX) modules. Nokia relies on Keysight’s validation and optimization solutions to advance the research and development in 5G advanced and 6G communications. These are likely to have translated into higher revenues in the quarter.
During the to-be-reported quarter, Keysight announced that Altium LLC licensed its advanced electromagnetic simulation technology to develop power analysis solutions for PCB designers. The Power Analyzer solution will provide interactive analysis of power integrity issues with its modern graphical user interface to make power analysis fast, accurate, and easy to run. PCB designers using Power Analyzer will gain insight into their power plane performance through analysis of voltage drop and current density from within their PCB layout environment. This is likely to have had a positive impact on the company’s first-quarter earnings.
However, the sluggish demand environment in China, supply chain headwinds and geopolitical and macroeconomic volatility remain concerns for the company’s growth prospects.
For the January quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,370 million, which indicates growth of 9.6% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $1.85, suggesting an increase from the prior year’s figure of $1.65.
Earnings Whispers
Our proven model does not predict an earnings beat for Keysight in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.65%, with the former pegged at $1.84 and the latter at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Keysight Technologies Inc. Price and EPS Surprise
Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote
Zacks Rank: Keysight has a Zacks Rank #4 (Sell).
Other Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Splunk Inc. is set to release quarterly numbers on Mar 1. It has an Earnings ESP of +0.39% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NICE Systems Ltd. (NICE - Free Report) is +1.98% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 23.
The Earnings ESP for BeiGene (BGNE - Free Report) is +4.19% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.