Keysight Technologies Shares Jump 7% Following Q2 Earnings

Shares of Keysight Technologies (NYSE:KEYS) experienced a more than 13% decline intra-day today due to the company's provided guidance that came in worse than expected.

The earnings per share (EPS) for the third quarter were $2.19, surpassing the Street estimate of $2.04. The company's revenue for the quarter remained unchanged year-over-year, amounting to $1.38 billion, aligning with the Street predictions.

Looking ahead to the fourth quarter of 2023, Keysight Technologies anticipates revenue to fall within the range of $1.29 billion to $1.31 billion, falling short of the Street figure of $1.39 billion. The projected non-GAAP EPS for the same period is expected to be between $1.83 and $1.89, which is lower than the analysts' expectation of $1.99.

For the entire fiscal year, the company anticipates its revenue to reach $5.45 billion and its EPS to be $8.19. This compares to the Street estimates of $5.55 billion in revenue and an EPS of $8.18.

Keysight Technologies (NYSE:KEYS) shares surged more than 7% yesterday after the company reported its Q2 earnings, with EPS of $2.12 coming in better than the Street estimate of $1.95. Revenue was $1.39 billion, beating the Street estimate of $1.38B.

For Q3, the company expects revenue in the range of $1.34-$1.39B, compared to the Street estimate of $1.38B, and EPS in the range of $2.00-$2.06, compared to the Street estimate of $1.96.

According to the analysts at Deutsche Bank, investor sentiment has been leaning incrementally negative in recent months, despite a more positive Analyst Day in March where management laid out better than expected multi-year targets.