Electronic measurement provider Keysight (NYSE:KEYS) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Keysight beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $1.30 billion, up 3.1% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ backlog estimates.
Is Keysight a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Keysight’s revenue to grow 5.5% year on year to $1.28 billion, a reversal from the 12.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Keysight has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Keysight’s peers in the inspection instruments segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FARO’s revenues decreased 1.6% year on year, beating analysts’ expectations by 3.3%, and Badger Meter reported revenues up 13.2%, in line with consensus estimates. FARO traded up 19.4% following the results while Badger Meter was also up 8.8%.
Read our full analysis of FARO’s results here and Badger Meter’s results here.
There has been positive sentiment among investors in the inspection instruments segment, with share prices up 20.4% on average over the last month. Keysight is up 25.4% during the same time and is heading into earnings with an average analyst price target of $179.01 (compared to the current share price of $165.40).
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