Electronic measurement provider Keysight (NYSE: KEYS) will be reporting earnings this Tuesday after market close. Here’s what investors should know.
Keysight beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.31 billion, up 7.4% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
Is Keysight a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Keysight’s revenue to grow 8.1% year on year to $1.32 billion, a reversal from the 11.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.67 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Keysight has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Keysight’s peers in the inspection instruments segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teledyne delivered year-on-year revenue growth of 10.2%, beating analysts’ expectations by 2.7%, and Itron reported flat revenue, in line with consensus estimates. Teledyne traded down 1% following the results while Itron was also down 11.1%.
Read our full analysis of Teledyne’s results here and Itron’s results here.
There has been positive sentiment among investors in the inspection instruments segment, with share prices up 4% on average over the last month. Keysight’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $188.18 (compared to the current share price of $163.40).
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