Keysight Technologies Q4 Earnings Preview: What Analysts Expect
Keysight Technologies Inc (KEYS) is set to release its Q4 2024 earnings report on Tuesday, November 19. Wall Street analysts anticipate earnings of $1.57 per share, reflecting a 21.1% year-over-year decline. Revenues are projected at $1.25 billion, down 4.4% from the same period last year. These figures indicate challenges for the company as it navigates a shifting market environment, particularly in its key operating segments.
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Expected Q4 Earnings Report of Keysight Technologies Inc:
1. Communications Solutions Group: Estimated revenue: $872.19 million (-2.1% YoY). Revenue from Commercial Communications: $571.21 million (+0.6% YoY), showing resilience in challenging markets. Aerospace, Defense & Government revenue: $300.98 million (-6.8% YoY).
2. Electronic Industrial Solutions Group:
Projected revenue: $379.96 million (-9.5% YoY). Income from operations: $80.74 million, down from $127 million in Q4 2023.
3. Long-term performance: Strong cash flow and robust 5-year earnings growth of 540.61%, placing Keysight in the top quartile within its sector.
4. Near-term concerns: No significant revisions to earnings estimate over the past 30 days, reflecting limited optimism from analysts.
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Stock Target Advisor’s Analysis on Keysight Technologies Inc:
According to Stock Target Advisor, Keysight Technologies holds a “Bullish” rating based on eight positive signals, including high market capitalization, superior risk-adjusted returns, and strong earnings growth. Its stock price, which closed at $149.37, reflects a decline of 16.05% over the past week, signaling recent investor caution. The average target price is $165.75, suggesting a potential 12-month upside.
However, there are concerns about the stock’s valuation, with it trading at a high price-to-earnings ratio of 31.87 and an elevated price-to-book ratio of 5.49 compared to peers. Despite these drawbacks, Keysight’s strong capital utilization and robust gross profit-to-asset ratio make it a compelling option for long-term investors.
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Conclusion:
As Keysight Technologies approaches its Q4 2024 earnings release, the market will closely watch its ability to navigate challenges in key segments while leveraging its long-term strengths. Investors will look to the earnings report for clarity on the company’s strategy to address short-term revenue declines while sustaining its robust growth trajectory in the years to come.
