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Key Takeaways
- Keysight Technologies shares soared after the provider of electronic testing products beat quarterly sales and profit estimates.
- Orders increased from a year ago even as many of Keysight’s end markets navigated macroeconomic challenges.
- The stock is up more than 30% since hitting a 2024 low on Aug. 7.
Shares of Keysight Technologies (KEYS) jumped nearly 14%, the best performance of any S&P 500 stock on Wednesday, following a strong quarterly earnings report.
Keysight, which supplies engineering and manufacturing software to various industries, posted revenue of $1.22 billion for its fiscal third quarter, down around 12% year-over-year but still ahead of analysts’ forecasts. Adjusted earnings per share of $2.22 slightly increased from a year ago and topped expectations.
Orders Grow Despite Macroeconomic Challenges
Macroeconomic pressures have been weighing on demand in numerous Keysight end markets.
The company has two reporting segments—the Communications Solutions Group (CSG) and the Electronic Industrial Solutions Group (EISG)—and both of them saw year-over-year revenue declines in the quarter. However, growth in orders during the quarter suggests the company has successfully navigated the challenging environment. Orders for the quarter totaled $1.25 billion, up from $1.24 billion a year ago.
“The funnel of opportunities supports our outlook for second half orders to be above first half orders, followed by a more gradual recovery in 2025, barring any further macroeconomic degradation,”
Keysight CEO Satish Dhanasekaran said in the company’s earnings statement.
Stock Performance
Just two weeks ago, on Aug. 7, Keysight shares sat at a 2024 low at around $120. Shares closed at $157.85 on Wednesday, nearly 32% above their recent low.