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Keysight Technologies, Inc. (NYSE: KEYS) Quarterly Earnings Preview

  • Earnings per Share (EPS) is expected to be $1.65 for the quarter ending April 2025, marking a 17% increase from the previous year.
  • Projected revenue of $1.28 billion represents a 5% rise compared to the same quarter last year.
  • Despite positive growth indicators, consensus EPS estimate has been slightly revised downward by 0.3% over the past month.

Keysight Technologies, Inc. (NYSE: KEYS) is a prominent player in the electronic design and test solutions industry. The company, headquartered in Santa Rosa, California, provides innovative solutions to accelerate the development of electronic products. KEYS operates in a competitive landscape, with rivals like Tektronix and Rohde & Schwarz. The company is set to release its quarterly earnings on May 20, 2025.

Wall Street anticipates KEYS to report earnings per share (EPS) of $1.65 for the quarter ending April 2025. This represents a 17% increase from the previous year, highlighting the company’s growth trajectory. Revenue is projected to reach $1.28 billion, a 5% rise compared to the same quarter last year. These figures underscore the company’s ability to generate higher earnings through increased revenue.

Despite the positive outlook, analysts have slightly revised the consensus EPS estimate downward by 0.3% over the past month. This adjustment reflects a reassessment of initial projections, indicating some skepticism about KEYS’ ability to exceed expectations. Such revisions are important as they often influence investor behavior and can impact the stock’s short-term price performance.

Keysight’s management is actively pursuing strategic collaborations to drive business expansion. A notable partnership in the reported quarter is with Coherent Corp., focusing on advanced illumination solutions for 3D sensing applications. This collaboration aims to enhance Coherent’s new laser technology, supporting higher data rates and facilitating the deployment of Artificial Intelligence and other advanced applications.

Financially, KEYS has a price-to-earnings (P/E) ratio of approximately 46.17, indicating investor confidence in its earnings potential. The company’s price-to-sales ratio is about 5.62, reflecting the market’s valuation of its revenue. With a debt-to-equity ratio of 0.39, KEYS maintains a moderate level of debt, showcasing financial stability. The current ratio of 2.95 further indicates a strong ability to cover short-term liabilities.

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