Keysight Technologies Inc. Shares Fall After Weaker-Than-Expected Outlook

Keysight Technologies Inc. shares experienced a decline in the extended session on Thursday, due to a weaker-than-expected outlook despite beating earnings expectations.

Share Performance

After hours, Keysight shares fell as much as 7%, following a 0.5% decline during the regular session. The closing price for the regular session was $150.05. Year to date, Keysight shares have seen a decrease of 12.3%, in comparison to the 36.1% gain of the PHLX Semiconductor Index, the 13.8% rise of the S&P 500, and the 27.2% gain of the tech-heavy Nasdaq Composite Index.

Future Projections

For the fiscal fourth quarter, Keysight forecasts earnings between $1.83 and $1.89 per share, with revenue expected to be between $1.29 billion and $1.31 billion. For the entire year, the company's outlook predicts earnings of approximately $8.19 per share on revenue of about $5.45 billion.

Analyst Expectations

Analysts had estimated fourth-quarter earnings of $2 per share on revenue of $1.39 billion, while projecting full-year earnings of $8.17 per share on revenue of $5.55 billion.

Financial Results

In the third quarter, Keysight reported a net income of $288 million, or $1.61 per share, compared to $338 million, or $1.87 per share, in the same period last year. Adjusted for stock-based compensation, acquisition-related and other costs, earnings for this quarter were $2.19 per share, compared to $2.01 per share in the previous year. FactSet analysts' consensus was for earnings of $2.04 per share. Revenue remained flat at approximately $1.38 billion, aligning with analyst expectations.

CEO Statement

Satish Dhanasekaran, the Chief Executive Officer of Keysight, stated, "Despite near-term macro challenges, Keysight’s diversified business, strong customer engagement through our differentiated solutions portfolio, and durable operating model give us confidence in our ability to capitalize on the long-term secular growth trends of our markets, as well as outperform in a variety of market conditions."

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