Electronic measurement provider Keysight (NYSE:KEYS) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Keysight beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $1.22 billion, down 11.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS and adjusted operating income estimates.
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 decline 4% year on year to $1.26 billion, improving from the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 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 1.1% on average.
Looking at Keysight’s peers in the inspection instruments segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FARO’s revenues decreased 4.9% year on year, beating analysts’ expectations by 4.5%, and Itron reported revenues up 9.8%, topping estimates by 3.2%. FARO traded up 36.6% following the results while Itron was also up 7.6%.
Read our full analysis of FARO’s results here and Itron’s results here.
There has been positive sentiment among investors in the inspection instruments segment, with share prices up 2.7% on average over the last month. Keysight is down 5.4% during the same time and is heading into earnings with an average analyst price target of $170.35 (compared to the current share price of $149.37).
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