Keysight Technologies Inc. (KEYS) stock soared in after-hours trading on Tuesday following the release of its third-quarter financial results, which surpassed analyst expectations. The company reported earnings of $1.57 per share, exceeding the consensus estimate of $1.35 by a significant 16.3%. Revenue also came in above projections, reaching $1.22 billion compared to the anticipated $1.194 billion, representing a 2.17% beat.
The Communications Solutions Group (CSG), a key segment for Keysight, generated $847 million in revenue during the quarter, though this represented an 8% decline from the same period last year. The decrease was attributed to a 6% drop in commercial communications revenue and a 10% reduction in the aerospace, defense, and government sectors.
Meanwhile, the Electronic Industrial Solutions Group (EISG) reported revenue of $370 million, marking a 20% year-over-year decline. This downturn reflected ongoing restraint in spending by customers in the general electronics, automotive, and manufacturing industries.
Despite the challenges in certain segments, Keysight’s overall performance exceeded expectations. Satish Dhanasekaran, the company’s president and CEO, attributed the positive results to stable market conditions that aligned with their forecasts. He expressed optimism about the future, citing a strong pipeline of opportunities that supports their outlook for increased orders in the second half of the year, followed by a gradual recovery in 2025, assuming no further macroeconomic deterioration.
Looking ahead, Keysight anticipates fourth-quarter earnings in the range of $1.53 to $1.59 per share, exceeding the analyst estimate of $1.54. Revenue is projected to fall between $1.245 billion and $1.265 billion, surpassing the consensus estimate of $1.25 billion.
The strong financial performance and positive outlook fueled a surge in Keysight’s stock price, with shares climbing by 11.50% after hours to reach $154.50 at the time of publication. The company’s ability to navigate challenging market conditions and deliver solid results has instilled confidence among investors, suggesting a positive trajectory for the company moving forward.
