Keysight Technologies (KEYS) Tops Q4 EPS by 10c, Revenues Beat; 1Q19 EPS/Revenue Guidance Above Consensus

Keysight Technologies (NYSE: KEYS) reported Q4 EPS of $1.01, $0.10 better than the analyst estimate of $0.91. Revenue for the quarter came in at $1.05 billion versus the consensus estimate of $1.02 billion.

“Keysight delivered a very strong finish to a breakout year with both revenue and earnings exceeding the high-end of our guidance for the quarter. Revenue grew 19 percent on a GAAP basis and 16 percent on a non-GAAP basis to reach a record $1.05 billion as we continue to see broad-based momentum across multiple end markets with our solutions. Fiscal 2018 was a record year for Keysight and we are pleased with our total performance. The investments we have made over the past several years in our technology, solutions, software and services are delivering results and have enabled Keysight to be at the forefront and capture the demand we see in the market,” said Ron Nersesian, Keysight president and CEO.

Fourth Quarter Financial Summary

• GAAP revenue grew 19 percent to reach $1,047 million, when compared with $878 million last year. Non-GAAP revenue, which excludes the impact of fair value adjustments to acquisition-related deferred revenue balances, grew 16 percent to reach $1,051 million. Non-GAAP core revenue, which also excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months, increased 17 percent.
• GAAP net loss was $114 million, or $0.61 per share, compared with a GAAP net loss of $38 million, or $0.20 per share, in the fourth quarter of 2017. Fourth quarter 2018 GAAP net loss reflects a non-cash goodwill impairment charge partially offset by a benefit from tax planning initiatives within the quarter.
• Non-GAAP net income was $193 million, or $1.01 per share using 191 million weighted average shares, compared with $135 million, or $0.71 per share using 189 million weighted average shares in the fourth quarter of 2017.
• As of October 31, 2018, cash and cash equivalents totaled $913 million.

GUIDANCE:

Keysight Technologies sees Q1 2019 EPS of $0.76-$0.82, versus the consensus of $0.75. Keysight Technologies sees Q1 2019 revenue of $965-985 million, versus the consensus of $965.05 million.

For earnings history and earnings-related data on Keysight Technologies (KEYS) click here.

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