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KEYS Set to Report Q4 Results: Will Top-Line Decline Impede Earnings?
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Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Nov. 19, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 6.67% on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Based in Santa Rosa, CA, the electronic design company is expected to have recorded a revenue contraction year over year owing to soft demand in Electronic Industrial Solutions Group. However, strong focus on product innovation and portfolio diversification is a tailwind.
Factors at Play
During the quarter, Keysight joined forces with Analog Devices to develop a robust testing solution for Gigabit Multimedia Serial Link devices. These devices empower engineers, designers and manufacturers to enhance product quality and safety for Advanced Driver Assistance Systems.
In the quarter under review, Keysight launched PathWave Advanced Power Application Suite to expedite the testing and designing of advanced battery systems. The company also expanded its regenerative power system series with the launch of two new models, offering power options of 20kW and 30kW at 500V. The company also expanded its semiconductor testing portfolio with the launch of the 4881HV High Voltage Wafer Test System. The addition of such leading-edge products has significantly improved KEYS’ prospects in several verticals.
KEYS also enabled QUALCOMM to establish the industry's first end-to-end interoperability and data connection in the high-band FR3 spectrum. This breakthrough represents a key advancement in wireless communication, setting new standards for network performance and user experience. Such initiatives are likely to have benefited the quarterly earnings.
In the fiscal fourth quarter, KEYS inked a definitive agreement with Synopsys to acquire its Optical Solutions Group (OSG) division for an undisclosed amount. Upon completion of the transaction, Keysight will have access to OSG’s team of experienced optical engineers and scientists, along with their state-of-the-art equipment. This will not only enhance the design engineering software portfolio of Keysight but will also strengthen its core competencies in radio frequency and microwave electronic design automation.
However, demand softness in general electronics, manufacturing and electric vehicle market will likely affect net sales in the Electronic Industrial Solutions Group. An uncertain macroeconomic environment remains a major concern.
Our estimate for the EISG segment is pegged at $396.3 million, indicating a 5.6% year-over-year decline. Our estimate for the Communications Solutions Group segment is pegged at $849.8 million, suggesting a decline from $891 million reported in the year-ago quarter.
For the October quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.25 billion, indicating a decline of 4.39% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $1.57, suggesting a decrease from the prior year’s figure of $1.99.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Keysight in the fiscal fourth 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 0.00%, with both pegged at $1.57. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few 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:
Walmart Inc. (WMT - Free Report) is scheduled to report quarterly numbers on Nov. 19. It has an Earnings ESP of +1.31% and carries a Zacks Rank of 2.
The Earnings ESP for Advance Auto Parts (AAP - Free Report) is +3.67%, and it has a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 14.
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KEYS Set to Report Q4 Results: Will Top-Line Decline Impede Earnings?
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Nov. 19, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 6.67% on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Based in Santa Rosa, CA, the electronic design company is expected to have recorded a revenue contraction year over year owing to soft demand in Electronic Industrial Solutions Group. However, strong focus on product innovation and portfolio diversification is a tailwind.
Factors at Play
During the quarter, Keysight joined forces with Analog Devices to develop a robust testing solution for Gigabit Multimedia Serial Link devices. These devices empower engineers, designers and manufacturers to enhance product quality and safety for Advanced Driver Assistance Systems.
In the quarter under review, Keysight launched PathWave Advanced Power Application Suite to expedite the testing and designing of advanced battery systems. The company also expanded its regenerative power system series with the launch of two new models, offering power options of 20kW and 30kW at 500V. The company also expanded its semiconductor testing portfolio with the launch of the 4881HV High Voltage Wafer Test System. The addition of such leading-edge products has significantly improved KEYS’ prospects in several verticals.
KEYS also enabled QUALCOMM to establish the industry's first end-to-end interoperability and data connection in the high-band FR3 spectrum. This breakthrough represents a key advancement in wireless communication, setting new standards for network performance and user experience. Such initiatives are likely to have benefited the quarterly earnings.
In the fiscal fourth quarter, KEYS inked a definitive agreement with Synopsys to acquire its Optical Solutions Group (OSG) division for an undisclosed amount. Upon completion of the transaction, Keysight will have access to OSG’s team of experienced optical engineers and scientists, along with their state-of-the-art equipment. This will not only enhance the design engineering software portfolio of Keysight but will also strengthen its core competencies in radio frequency and microwave electronic design automation.
However, demand softness in general electronics, manufacturing and electric vehicle market will likely affect net sales in the Electronic Industrial Solutions Group. An uncertain macroeconomic environment remains a major concern.
Our estimate for the EISG segment is pegged at $396.3 million, indicating a 5.6% year-over-year decline. Our estimate for the Communications Solutions Group segment is pegged at $849.8 million, suggesting a decline from $891 million reported in the year-ago quarter.
For the October quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.25 billion, indicating a decline of 4.39% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $1.57, suggesting a decrease from the prior year’s figure of $1.99.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Keysight in the fiscal fourth 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 0.00%, with both pegged at $1.57. 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 #3.
Stocks to Consider
Here are a few 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 Gap, Inc. (GAP - Free Report) is set to release quarterly numbers on Nov. 21. It has an Earnings ESP of +3.05% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart Inc. (WMT - Free Report) is scheduled to report quarterly numbers on Nov. 19. It has an Earnings ESP of +1.31% and carries a Zacks Rank of 2.
The Earnings ESP for Advance Auto Parts (AAP - Free Report) is +3.67%, and it has a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 14.