Keysight Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Core Viewpoint - Keysight Technologies, Inc. reported strong first-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1][2]. Financial Performance - Net income on a GAAP basis was $169 million or 97 cents per share, a slight decrease from $172 million or 98 cents per share in the same quarter last year [3]. - Non-GAAP net income for the quarter was $317 million or $1.82 per share, up from $286 million or $1.63 per share year-over-year, surpassing the Zacks Consensus Estimate by 13 cents [3]. - Quarterly net sales increased to $1.3 billion from $1.26 billion in the prior year, exceeding the high-end of guidance, with total orders rising 4% year-over-year to $1.26 billion [4]. Segment Performance - The Communication Solutions Group (CSG) generated $883 million in revenues, a 5% increase from $839 million in the prior year, driven by strong demand in commercial communications and defense markets [5]. - The Electronic Industrial Solutions Group (EISG) saw revenues decrease to $415 million from $420 million year-over-year, impacted by mixed demand, particularly in the automotive sector, while semiconductor-related demand remained strong [7]. - Region-wise, revenues from Asia-Pacific were $488 million, down from $490 million, while revenues from the Americas increased by 7% to $551 million, and Europe saw a slight increase to $259 million from $255 million [8]. Profitability Metrics - Non-GAAP gross profit for the quarter was $854 million, with gross margins of 65.8%, compared to 67.2% in the prior year [9]. - Non-GAAP operating margin was 27.3%, slightly down from 28.2% year-over-year [9]. Cash Flow and Liquidity - Keysight generated $378 million in cash from operating activities, up from $328 million a year ago, with cash and cash equivalents totaling $2.06 billion and long-term debt at $1.79 billion as of January 31, 2025 [11]. Outlook - For the second quarter of fiscal 2025, Keysight expects revenues between $1.27 billion and $1.29 billion, with non-GAAP earnings estimated to be between $1.61 and $1.67 per share [12].