/Keysight%20Technologies%20Inc%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Santa Rosa, California-based Keysight Technologies, Inc. (KEYS) provides electronic design and test solutions to a wide range of industries, including commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education. Valued at a market cap of $28.7 billion, the company is expected to announce its fiscal Q1 earnings results on Tuesday, Feb. 18.
Ahead of this event, analysts expect the software company to report a profit of $1.49 per share, up 11.2% from $1.34 per share in the year-ago quarter. The company has beaten Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q4 2024, Keysight’s EPS of $1.50 outpaced the consensus estimates by a solid margin of 6.4%.
For fiscal 2025, analysts expect KEYS to report an EPS of $6.51, up 19.7% from $5.44 in fiscal 2024.
Shares of KEYS have gained 10.6% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 26.5% rise and the Technology Select Sector SPDR Fund’s (XLK) 22.1% return over the same time frame.
Shares of KEYS surged 8.8% on the subsequent day after its Q4 earnings release on Nov. 19. The company delivered better-than-expected Q4 adjusted earnings of $1.65 per share and revenues of $1.3 billion. However, the top-line declined 1.5% from the year-ago quarter, while the bottom-line figure fell 17.1% year-over-year.
A 1.4% rise on a year-over-year basis and 8% sequential growth in orders due to strength in AI and strong year-end bookings in the US aerospace, defense, and government business might have further bolstered investor confidence. Additionally, the management expressed confidence in its differentiated portfolio, deep customer engagement, and its focus on continuous technology innovation that positions it to outperform as markets recover.
Wall Street analysts are strongly 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. This configuration is more bullish than three months ago, with seven analysts suggesting a “Strong Buy.”
The average price target for KEYS is $181.50, which indicates a modest 9.5% potential upside from the current levels.
