Yahoo Finance With Top-Line Expansion Improve Keysight's (KEYS) Q2 Earnings?
Keysight Technologies, Inc. KEYS is scheduled to report second-quarter fiscal 2023 results on May 16 after market close. In the last reported quarter, the company delivered an earnings surprise of 9.19%. It pulled off a trailing four-quarter earnings surprise of 9.65%, on average.
The global leader in electronic design and test solutions is likely to report higher revenues year over year. The focus on technological innovation, collaboration with various industry partners and research institutes to drive technological advancement combined with a comprehensive product portfolio catering to various industry needs are expected to have boosted the top line.
Factors at Play
During the second quarter, Keysight partnered with Synopsys, an electronic products and software application developer, and Ansys, a simulation software provider, to augment the performance of Autonomous systems with 79Ghz millimeter wave (mmWave) radio frequency design flow. The collaboration leveraged RF design expertise from Keysight combined with Synopsys analog and mixed-signal design to support TSMC's (Taiwan Semiconductor Manufacturing Company) 16nm FinFET Compact Technology (16FFC).
Keysight also collaborated with the National Physical Laboratory (NPL) and the University of Surrey to demonstrate first 6G connection at a frequency of 300GHZ registering a speed of more than 100 Gbps. Keysight provides the necessary infrastructure for researchers to introduce groundbreaking technology platforms utilizing 5G advanced and 6G technologies. Such initiatives are likely to have boosted the top line during the quarter.
In the fiscal second quarter, Keysight introduced Novus Mini, a compact, cost-efficient network test solution that combined traffic generation and protocol testing in a single platform. It efficiently supports network engineers and enables them to perform compliance testing for automotive and loT applications. The company also announced that it has expanded its e-mobility charging test portfolio to accelerate the development of electric charging infrastructure and improve interoperability among e-mobility products. In addition to complementing its existing electric vehicle (EV) and electric vehicle supply equipment (EVSE) charging products, the portfolio expansion is likely to strengthen its leading position in the market.
During the quarter, Keysight validated the performance of Astella’s 5G Open RAN mmWave small cell base station. Astella Technologies, a Hong Kong-based O-RAN solution provider, opted to utilize Keysight Open RAN Architect (KORA) solutions to ensure that its product adheres to industry requirements to expedite commercial use. These developments are likely to have contributed to top-line growth in the quarter.
Keysight launched the Digital Learning Suite to support educators with a comprehensive platform that will allow them to deliver cutting-edge industry-ready training. The solution is dedicated toward developing the best-in-class tools to streamline digital learning and support students across all backgrounds. Keysight’s platform provides educators and students with one-stop access to lab resources and reduces the complexity of lab management. This time-efficient solution increases the real-time interaction between teachers and students and enhances overall productivity through test instrument control and data analysis tools.
In the quarter under review, Keysight collaborated with RISE Research Institutes of Sweden, KTH Royal Institute of Technology and Riga Technical University (RTU) to help innovate and develop the next-generation datacom optical interface. The partnership demonstrated greater Gbaud rates that will significantly improve information transmission capabilities. The new 75 GHz Keysight M8199B 256 GSa/s Arbitrary Waveform Generator combined with 110 GHz Keysight UXR1104A Infinium UXR-Series Oscilloscope was used during the demonstration.
Keysight partnered with NTT DOCOMO, Inc. and NTT to develop key technologies for 6G capabilities. The collaboration will likely promulgate affordable solutions to drive 6G wireless innovation to help bring this future communications technology to market. Such collaborations are likely to get reflected in the upcoming results.
For the April quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,379 million, which indicates growth from $1,351 million reported in prior year quarter. The consensus estimate for adjusted earnings per share stands at $1.94, suggesting an increase from the prior-year quarter’s figure of $1.83.
Earnings Whispers
Our proven model does predict an earnings beat for Keysight in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.09%, with the former pegged at $1.95 and the latter at $1.94. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Keysight Technologies Inc. Price and EPS Surprise
Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote
Zacks Rank: Keysight has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Here are other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Agilent Technologies, Inc. A is set to release quarterly numbers on May 23. It has an Earnings ESP of +0.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Jabil, Inc. JBL is +3.38% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Jun 15.
The Earnings ESP for Splunk Inc. SPLK is +12.16% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
