Keysight Technologies Reports Second Quarter 2024 Results

Keysight Technologies ( KEYS ), a California-based electronics equipment maker, has forecasted a third-quarter profit below estimates due to slow demand in the electronics industrial markets. Keysight ( KEYS ) expects the third-quarter profit to be between $1.30 and $1.36 per share, below analysts' estimate of $1.45 per share. The company reported a 10% decline in second-quarter revenue in its communications solutions segment, which accounted for 67% of its total revenue in 2023. Revenue in its electronic industrial solutions segment fell 17% in the second quarter, reflecting continued constraints in semiconductor and manufacturing-related customer spending.

Keysight ( KEYS ) earned $1.41 per share on an adjusted basis, compared with the LSEG estimate of $1.39 apiece. The company's second quarter financial summary showed revenue of $1.22 billion, compared to $1.39 billion in the second quarter of 2023. GAAP net income was $126 million, or $0.72 per share, compared to $283 million, or $1.58 per share, in the second quarter of 2023. Non-GAAP net income was $247 million, or $1.41 per share, compared to $380 million, or $2.12 per share in the second quarter of 2023. Cash flow from operations was $110 million, compared to $423 million last year, and free cash flow was $74 million, compared to $370 million in the second quarter of 2023.

Technical Outlook
Keysight ( KEYS ) stock is down 3.75% in Tuesday's Pre-market trading which is an indication of a trend reversal due to the overbought nature of the stock currently trading with a Relative Strength Index (RSI) of 68.23