Keysight (KEYS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often fi ...

Core Viewpoint - Keysight Technologies, Inc. has joined the Intel Foundry Accelerator US Military, Aerospace and Government Alliance to enhance the U.S. Defense Industrial Base and expand access to its advanced tools and technologies critical for national security [1]. Keysight's Contribution to the Defense Sector - Keysight has been a leader in providing tailored Electronic Design Automation (EDA) tools and advanced test solutions to major defense contractors and the U.S. government for many years [2]. - The company's offerings include next-generation EDA software, manufacturing automation, RF signal routing, conditioning software, and IP management solutions, which are essential for complex RF, microwave, and high-speed digital systems [3]. Stock Performance and Market Position - Keysight is experiencing strong industry-wide growth, with solid adoption of its electronic design and test solutions, particularly in microelectronics development [4]. - The collaboration with the USMAG Alliance is expected to generate incremental demand for Keysight's solutions, leading to higher revenues and improved financial performance, which may positively impact the stock price [6]. - Over the past year, Keysight's shares have gained 12.3%, outperforming the industry's growth of 10.4% [7].

Keysight Technologies, Inc. (KEYS) recently announced that it is steadily advancing the process of obtaining regulatory clearance from concerned authorities. The company has already secured approval under the U.K.’s National Security and Investment Act 2021 and also from the German Federal Ministry for Economic Affairs and Climate Action. A conditional authorization for the acquisition has been received from the French Ministry for the Economy, Finance, and Industry. KEYS and Spirent are actively engaging w ...

Keysight Technologies, Inc. (KEYS) , a leading provider of electronic design and test instrumentation systems, reported better-than-expected fiscal fourth-quarter results. Non-GAAP earnings of $1.65 per share surpassed the Zacks Consensus Estimate by 8 cents.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues declined 2% year over year to $1.287 billion. However, the figure surpassed the Zacks Consensus Estimate by $34 million. Despite a mixed demand environment, solid order gr ...

Keysight Technologies, Inc. (KEYS) recently expanded its financial capital markets portfolio through a strategic collaboration with a software company in London, Instrumentix. By integrating Instrumentix's renowned xMetrics flow monitoring software with Keysight’s market-data health and quality monitoring capabilities, the collaborative effort aims to introduce a cutting-edge trade solution that will provide financial institutions with powerful tools to monitor and analyze optical taps, high-speed packet br ...

Keysight, Inc. (KEYS) reported relatively strong fourth-quarter fiscal 2024 results, with the bottom and the top lines surpassing the respective Zacks Consensus Estimate. However, the company reported a top-line decline year over year. Weakness in multiple end markets impeded the net sales growth.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Strength in AI data center market, aerospace, defense and government end markets and healthy momentum in software and services partially cush ...

Keysight Technologies, Inc. KEYS reported better-than-expected fourth-quarter financial results.Keysight Techs reported quarterly earnings of $1.65 per share which beat the analyst consensus estimate of $1.57. The company reported quarterly sales of $1.287 billion which beat the analyst consensus estimate of $1.258 billion."Keysight executed well and delivered fourth-quarter revenue and earnings per share above the high end of guidance under market conditions which remained consistent with our expectations, ...

Shares of Keysight Technologies (NYSE: KEYS ) have been an underperformer over the past year, gaining just 10% as it has battled with slowing demand in Asia. That said, shares popped by 9% after-hours on Tuesday after reporting solid earnings. I last covered shares ofOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question fo ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1,287 million, down 2% year-over-year or down 5% on a core basis, exceeding guidance [30] - Full-year revenue was $4,979 million, down 9% as reported or down 12% on a core basis [32] - Earnings per share for the fourth quarter was $1.65, with full-year earnings per share at $6.27 [32][33] - Operating margin for Q4 was 26%, or 28% on a core basis, with a gross margin of 64.5% [31] Business Line Data and Key Metrics Changes - Communications Solutions Group (CSG) revenue was flat year-over-year at $894 million, with a 4% growth in Commercial Communications and a 6% decline in Aerospace, Defense, and Government [34] - Electronic Industrial Solutions Group (EISG) revenue was down 6% year-over-year at $393 million, with mixed orders [35] - Software and Services revenue grew 8% in Q4, accounting for 39% of total revenue, with annual recurring revenue growing 16% to approximately $1.5 billion [25][26] Market Data and Key Metrics Changes - Orders grew 1% year-over-year, driven by strength in AI and strong bookings in Aerospace, Defense, and Government [8] - The automotive market faced headwinds, with production-related demand stable but cautious due to slowing EV sales [22] - Demand in wireline markets remained strong due to AI data center infrastructure expansion [12] Company Strategy and Development Direction - The company is focused on a software-centric solutions strategy, investing in organic growth opportunities and selective M&A [10] - Emphasis on expanding capabilities in AI and 6G research, with collaborations in Open RAN and defense modernization [15][17] - The company aims to capitalize on opportunities as markets recover, leveraging its differentiated portfolio and customer engagement [10][27] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed demand environment with gradual recovery expected in FY'25, projecting revenue growth at the low end of the 5% to 7% long-term target [37] - The company expressed confidence in the Aerospace and Defense sector, despite short-term uncertainties due to government budget changes [47] - Management highlighted the resilience of the business model, with strong cash flow and a commitment to returning capital to shareholders [9][36] Other Important Information - The company ended the quarter with $1.8 billion in cash and cash equivalents, generating $328 million in free cash flow [36] - Share repurchases totaled $150 million in Q4, with full-year repurchases amounting to $439 million [36] Q&A Session Summary Question: Wireless business recovery outlook - Management expressed increased confidence in the wireless segment, noting stabilization and growth in infrastructure related to Open RAN and 6G [45] Question: Concerns in Aerospace and Defense segment - Management indicated a clear long-term trajectory for the Aerospace and Defense business, despite some short-term uncertainties due to government budget changes [46] Question: AI's impact on wireline business - The wireline business has exceeded $1 billion in orders, driven by AI-related infrastructure investments, with expectations for continued growth [52] Question: Software and Services growth impact - The software segment is expected to positively impact gross margins, with ongoing investments in virtual simulation and emulation driving resilience [53][54] Question: Automotive market challenges - Management acknowledged challenges in the automotive sector but highlighted opportunities in software-defined vehicles and charging infrastructure [89] Question: M&A strategy and capital allocation - The company remains focused on organic growth while evaluating selective M&A opportunities, with a commitment to maintaining buyback programs [101][103]

Financial Performance - Keysight reported revenue of $1.29 billion for the quarter ended October 2024, a year-over-year decline of 1.8% [1] - EPS for the quarter was $1.65, compared to $1.99 in the same period last year [1] - Revenue exceeded the Zacks Consensus Estimate of $1.25 billion by 2.68% [1] - EPS surpassed the consensus estimate of $1.57 by 5.10% [1] Segment Performance - Communications Solutions Group revenue was $894 million, a 0.3% increase year-over-year and above the $872.19 million estimate [3] - Commercial Communications revenue reached $591 million, a 4.1% increase year-over-year and above the $571.21 million estimate [3] - Aerospace, Defense & Government revenue was $303 million, a 6.2% decrease year-over-year but slightly above the $300.98 million estimate [3] - Electronic Industrial Solutions Group revenue was $393 million, a 6.4% decrease year-over-year but above the $379.96 million estimate [3] - Income from operations for Electronic Industrial Solutions Group was $83 million, exceeding the $80.74 million estimate [3] - Income from operations for Communications Solutions Group was $249 million, surpassing the $236.85 million estimate [3] Stock Performance - Keysight shares returned -4.1% over the past month, underperforming the Zacks S&P 500 composite's +0.6% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]