Keysight Technologies Inc Reports Q3 2024 Financial Results
Intellectia.AI Updated: 2024-08-20
Keysight Technologies, Inc. Reports Q3 2024 Financial Results
Keysight Technologies, Inc. (NYSE: KEYS) has reported its financial results for the third fiscal quarter ended July 31, 2024.
Consolidated Financial Performance
The key financial metrics for Keysight Technologies were as follows:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $1.22B | $1.38B | -11.59% | $1.19B |
| GAAP Net Income | $389M | $288M | 35.07% | N/A |
| GAAP Earnings Per Share (EPS) | $2.22 | $1.61 | 37.89% | N/A |
| Non-GAAP Net Income | $275M | $393M | -29.79% | N/A |
| Non-GAAP EPS | $1.57 | $2.19 | -28.31% | $1.35 |
| Cash Flow from Operations | $255M | $241M | 5.81% | N/A |
| Free Cash Flow | $222M | $196M | 13.27% | N/A |
| Cash and Cash Equivalents | $1.63B | N/A | N/A | N/A |
Interpretation : Keysight Technologies reported revenue of $1.22 billion, exceeding the consensus estimate of $1.19 billion. GAAP EPS of $2.22 was significantly higher year-over-year, while the non-GAAP EPS of $1.57 was also above the consensus estimate of $1.35. Despite a year-over-year revenue decrease, the company managed to maintain strong operational cash flow and increased its free cash flow, indicating efficient cost management and operational resilience.
Revenue by Segment
The revenue performance across the major segments is presented below:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Communications Solutions Group (CSG) | $847M | $921M | -8% |
| Electronic Industrial Solutions Group (EISG) | $370M | $463M | -20% |
Interpretation : The Communications Solutions Group (CSG) reported revenue of $847 million, down 8% year-over-year, influenced by a decline in both commercial communications and the aerospace, defense, and government sectors. The Electronic Industrial Solutions Group (EISG) generated $370 million, which represents a 20% year-over-year decrease, driven by reduced spending in general electronics, automotive, and manufacturing-related sectors.
Forward Guidance
Keysight provided forward guidance for the fourth fiscal quarter of 2024:
- Revenue : Expected to be in the range of $1.245 billion to $1.265 billion.
- Non-GAAP EPS : Expected to be in the range of $1.53 to $1.59.
Stock Price Movement
Following the earnings release, Keysight’s stock price experienced an increase of approximately 9.7%.
Comments from Company Officers
Satish Dhanasekaran, Keysight's President and CEO, commented, "Keysight delivered revenue and earnings above the high end of our guidance in market conditions that were stable and consistent with our expectations. The funnel of opportunities supports our outlook for second half orders to be above first half orders, followed by a more gradual recovery in 2025, barring any further macroeconomic degradation."
Dividends and Share Repurchase Program
The earnings release did not mention any newly announced dividends or share repurchase programs.
Summary
The positive financial performance in Q3 2024, combined with strong guidance for Q4, signifies sustained growth and resilience for Keysight Technologies. The company’s operational efficiency and strategic outlook position it well for future growth, enhancing investor confidence as reflected in the stock price surge.
Source : Keysight Technologies, Inc. Q3 2024 Earnings Release .
