Electronic measurement provider Keysight (NYSE: KEYS) will be announcing earnings results this Tuesday after market hours. Here’s what you need to know.
Keysight beat analysts’ revenue expectations last quarter, reporting revenues of $1.72 billion, up 31.5% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Keysight a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Keysight’s revenue to grow 29.1% year on year, improving from the 11.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Keysight has a history of exceeding Wall Street’s expectations.
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. Viavi Solutions delivered year-on-year revenue growth of 52.5%, beating analysts’ expectations by 2.4%, and Teledyne reported revenues up 9.8%, topping estimates by 5.3%. Viavi Solutions traded up 4.3% following the results while Teledyne’s stock price was unchanged.
Read our full analysis of Viavi Solutions’s results here and Teledyne’s results here.
There has been positive sentiment among investors in the inspection instruments segment, with share prices up 4.6% on average over the last month. Keysight is up 14.5% during the same time and is heading into earnings with an average analyst price target of $388.33 (compared to the current share price of $359.15).
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