TECH - Keysight Q2 Earnings Beat Estimate Despite Lower Revenues | Benzinga
Keysight Technologies Inc. (NYSE: KEYS) reported relatively healthy second-quarter fiscal 2024 results, with the bottom and the top lines surpassing the respective Zacks Consensus Estimate. However, the company reported a top-line decline year over year. Weakness in multiple end markets including conumser electronincs, semiconductor impeded the net sales growth.
Healthy momentum in electric vehicles, AI data center, software and services partially cushioned the top line. Growing spending for defense modernization in the United States and Europe are tailwinds. The company has completed the acquisition of Riscure. The buyout expanded Keysight's automated security assessment capabilities for semiconductors, embedded systems and connected devices.
Net Income
Net income on a GAAP basis was $126 million or 72 cents per share, down from $283 million or $1.58 per share in the year-ago quarter. The decline was primarily attributed to top-line contraction year over year.
Non-GAAP net income in the reported quarter was $247 million or $1.41 per share compared with $380 million or $2.12 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 2 cents.
Keysight Technologies Inc. Price, Consensus and EPS Surprise
Keysight Technologies Inc. price-consensus-eps-surprise-chart | Keysight Technologies Inc. Quote
Revenues
Quarterly net sales were $1.22 billion compared with $1.39 billion recorded in the year-ago quarter. Total orders declined 8% year over year to $1.21 billion. Weak demand in multiple end markets hindered revenue growth. However, the top line beat the Zacks Consensus Estimate by $17 million.
Communication Solutions Group generated $840 million in revenues, down 10% year over year. The company witnessed net sales decline year over year in the Aerospace, Defense ...