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Will Healthy Y/Y Revenue Growth Boost Keysight's Q2 Earnings?
ZACKSยท 2025-05-12 18:05
Core Viewpoint - Keysight Technologies, Inc. is expected to report higher year-over-year revenues for the second quarter of fiscal 2025, driven by strong performance across its segments and strategic collaborations with industry players [1][6]. Factors at Play - Keysight's collaboration with Coherent Corp. aims to enhance 3D sensing applications through advanced laser technology, which is expected to support AI/ML services while reducing power consumption and capital expenditure for data centers [2]. - The company introduced innovative products, including the Next-Generation Embedded Security Testbench, designed to address security challenges in modern chips, thereby improving testing efficiency and reliability [3]. - Keysight launched the Photonic Designer software to streamline workflows in photonic design, enhancing accuracy and compliance validation [4]. - The company expanded its RF and microwave instrument portfolio with new signal generators and analyzers, which are anticipated to drive demand and revenue growth [5]. Overall Expectations - Revenue estimates for the Communications Solutions Group are projected at $870.2 million, reflecting a 3.6% year-over-year increase, while the Electronic Industrial Solutions Group is expected to generate $409.2 million, an 8.8% increase [6]. - The overall revenue consensus for the second quarter is $1.28 billion, up from $1.22 billion year-over-year, with adjusted earnings per share expected to rise to $1.65 from $1.41 [6].