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.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
