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Can Healthy Revenue Growth Aid Keysight's (KEYS) Q3 Earnings?

Keysight Technologies, Inc KEYS is scheduled to report third-quarter fiscal 2022 results on Aug 17 after the market closes. In the last reported quarter, the company delivered an earnings surprise of 9.6%. It pulled off a trailing four-quarter earnings surprise of 8%, on average.

The Santa Rosa, CA-based electronic design company is expected to have recorded year-over-year higher revenues due to increased sales from the Communications Solutions Group and Electronic Industrial Solutions Group.

Factors at Play

In the fiscal third quarter Keysight introduced the new PathWave Advanced Design System (ADS) 2023, which is an integrated design and simulation software that rapidly is addressing the increasing design complexity along with higher frequencies in the radio frequency (RF) and microwave industry. This will comprise enhancements to electromagnetic (EM) simulation for circuit designers. The consensus estimate for revenues from Communications Solutions Group stands at $948 million, which implies an increase from $875 million reported a year ago.

In the fiscal third quarter, the company announced that Scania, part of Volkswagen Group, chose Keysight’s Scienlab Battery Test Solutions to develop its new state-of-the art battery laboratory present at its research and development facilities in Sodertalje, Sweden. The consensus estimate for revenues from Electronic Industrial Solutions Group stands at $399 million, which implies an increase from $371 million reported a year ago.

For the July quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,344 million, which indicates growth of 7.9% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $1.79, suggesting an increase of 16.2% year over year.

 

Keysight Technologies Inc. Price and EPS Surprise

Keysight Technologies Inc. Price and EPS Surprise
Keysight Technologies Inc. Price and EPS Surprise

Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote

What Our Model Says

Our proven model predicts an earnings beat for KEYS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is just the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Keysights Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, stands at +1.23%, with the former pegged at $1.81 and the latter at $1.79.
    
Zacks Rank: It currently carries a Zacks Rank #2.

Other Stocks to Consider

Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:


Intuit Inc. INTU has an Earnings ESP of +1.92% and has a Zacks Rank #2. Intuit is set to report fourth-quarter and full-year fiscal 2022 results on Aug 23.

Core Scientific, Inc (CORZ) is slated to release second-quarter 2022 results on Aug 11. Core Scientific has an Earnings ESP of +39.39% and has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Box, Inc. BOX is scheduled to release second-quarter fiscal 2023 results on Aug 24. Box has an Earnings ESP of +1.20% and has a Zacks Rank #3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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