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Keysight Technologies, Inc. (KEYS) provides electronic design and test solutions to various industries including energy, semiconductor, electronics, defense, and more. With a market cap of $24 billion, Keysight operates through Communications Solutions and Electronic Industrial Solutions segments. It is expected to announce its Q3 earnings on Thursday, August 15.
Ahead of the event, analysts expect Keysight to report a profit of $1.19 per share, down 41.7% from $2.04 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. Its EPS of $1.24 in the last reported quarter exceeded the consensus estimates marginally.
Looking ahead to fiscal 2024, analysts project Keysight to report an EPS of $5.25, down 30.7% from $7.57 in fiscal 2023. However, in fiscal 2025, its EPS is expected to grow 18.3% year over year to $6.21.
KEYS stock is down 13.7% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 14.5% gains and the S&P 500 Technology Sector SPDR’s (XLK) 11.9% returns over the same time frame.
Shares of Keysight fell 8.4% following its Q2 earnings release on May 20, primarily due to a 12.5% decline in revenues and a 55.5% drop in net income compared to the year-ago quarter. The company has faced several supply chain disruptions due to geopolitical tensions and trade restrictions. Moreover, the macroeconomic slowdown has led to lower demand affecting its financial performance.
Despite the dip, Keysight raised its investment in R&D by 2.7% year over year and made a strategic acquisition of the ESI group for $935 million, exhibiting its approach to growth and expansion.
The consensus opinion on Keysight stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 11 analysts covering the stock, seven recommend a “Strong Buy,” one advise a “Moderate Buy,” two suggest a “Hold,” and the remaining one analyst advocates a “Moderate Sell” rating.
The average target price for KEYS is $166.50, indicating a potential upside of 21.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
