Keysight Technologies (KEYS) Tops Q3 EPS by 36c, Revenues Beat; Offers 4Q EPS/Revenue Guidance Above Consensus

Keysight Technologies (NYSE: KEYS) reported Q3 EPS of $1.19, $0.36 better than the analyst estimate of $0.83. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $927.45 million.

Third Quarter Financial Summary

• Orders were $1,067 million, compared with $1,110 million last year, a decrease of 4%.
• GAAP revenue was $1,011 million, compared with $1,087 million last year. Non-GAAP revenue decreased 7 percent on a core basis, which excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months.
• GAAP net income was $176 million, or $0.93 per share, compared with GAAP net income of $159 million, or $0.83 per share, in the third quarter of 2019.
• Non-GAAP net income was $226 million, or $1.19 per share, compared with $239 million, or $1.25 per share in the third quarter of 2019.
• As of July 31, 2020, cash and cash equivalents totaled $1,697 million.

“Keysight delivered stronger-than-expected third quarter results as we ramped production capacity back to nearly 100% by quarter-end. Our execution and financial performance demonstrated the exceptional resilience of our business for the second quarter in a row, even with continued macro challenges. The Keysight team rapidly adapted to a new operating environment, while delivering on our commitments to customers, partners, and shareholders,” said Ron Nersesian, Keysight’s Chairman, President and CEO. “Despite near-term uncertainty, we expect to achieve year-over-year revenue and earnings growth in the fourth quarter.”

GUIDANCE:

Keysight Technologies sees Q4 2020 EPS of $1.42-$1.48, versus the consensus of $1.24. Keysight Technologies sees Q4 2020 revenue of $1.17-1.19 billion, versus the consensus of $1.11 billion.

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

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