Electronic measurement provider Keysight (NYSE: KEYS) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.
Keysight beat analysts’ revenue expectations last quarter, reporting revenues of $1.6 billion, up 23.3% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA 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 30.4% year on year, improving from the 7.4% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
Looking at Keysight’s peers in the inspection instruments segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Viavi Solutions delivered year-on-year revenue growth of 42.8%, beating analysts’ expectations by 3.5%, and Teledyne reported revenues up 7.6%, topping estimates by 3%. Viavi Solutions traded up 15.1% following the results while Teledyne was also up 1.4%.
Read our full analysis of Viavi Solutions’s results here and Teledyne’s results here.
Investors in the inspection instruments segment have had steady hands going into earnings, with share prices flat over the last month. Keysight is up 4.7% during the same time and is heading into earnings with an average analyst price target of $323 (compared to the current share price of $351).
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