From Nasdaq: 2024-05-14 13:09:00

Keysight Technologies, Inc. KEYS is set to report Q2 fiscal 2024 results on May 20, after a 6.39% earnings surprise. The Santa Rosa-based electronic design company may see a decline in top-line due to soft demand, but expansion in innovative markets like EVs, AI data centers, and wireless communications is a positive factor.

Keysight introduced an AI Data Center Test platform and partnered with NVIDIA and AMD to accelerate 6G research. Recent collaborations with Autotalks and Deutsche Telekom also supported performance. However, weak verticals and inventory corrections in the commercial communications market are expected to impact net sales in certain segments.

The company announced plans to acquire Spirent Communications for $1.5 billion, aligning with a long-term software-centric strategy. Analysts project a 13.55% decline in total revenues and a decrease in adjusted earnings per share for Q2 fiscal 2024. The Zacks Consensus Estimate for total revenue is $1.20 billion and $1.38 for adjusted EPS.

With an Earnings ESP of 0.00% and Zacks Rank #3, our model does not predict an earnings beat for Keysight. For Q2, NVIDIA, Walmart, and Nice are other stocks to watch for potential earnings beats. NVIDIA has an Earnings ESP of +2.38%, Walmart +2.45%, and Nice +0.18%, with all carrying a Zacks Rank of 3 or 2. Earnings announcements for these companies are set for May 16 and May 22.



Read more at Nasdaq: Will Revenue Decline Impede Keysight (KEYS) Q2 Earnings?