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Will Top-Line Growth Buoy Keysight's (KEYS) Q2 Earnings?
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Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report second-quarter fiscal 2022 (ended Apr 30, 2022) results on May 17, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.1%. It pulled off a trailing four-quarter earnings surprise of 7.5%, on average.
The Santa Rosa, CA-based company is expected to have recorded year-over-year higher revenues despite tight supply conditions, driven by solid demand for its first-to-market solutions across all end markets and regions.
Factors at Play
During the quarter, VTT Technical Research Centre of Finland Ltd. selected Keysight Open Radio Architect (KORA) solutions to build an open testing and integration facility, supporting an open radio access network (RAN) ecosystem. Keysight offers open RAN software platforms and built-in test automation capabilities, which help accelerate the verification of components, sub-systems and end-to-end systems across the product workflow. In addition, it introduced the Scienlab SL1302A software, which enables original equipment manufacturers to perform electric vehicle supply equipment interoperability tests based on the GB/T 34657.1 standard. These are likely to be reflected in the upcoming results.
The company augmented its 5G validation solutions portfolio during the to-be-reported quarter by incorporating advanced designs and improved capabilities to better serve its consumers. Keysight has upgraded its 5G Network Emulation Solution that leverages its proprietary UXM 5G Wireless Test Platform, an integrated and compact signaling test platform that emulates a 5G new radio (NR) network. The UXM 5G platform supports protocol compliance and functional key performance analytics across both sub-6GHz and mmWave spectra. The improved design features will offer extended frequency range coverage, flexible use of wider bandwidth resources, increased processing power to support more carrier aggregation and superior uplink capabilities for comprehensive multi-SIM support for 5G/4G network combinations.
Keysight also received the first Federal Communications Commission (“FCC”) Spectrum Horizons Experimental license for developing 6G technology in sub-Terahertz (THz) frequency bands, between 95 gigahertz (GHz) and 3 THz. The license enables Keysight to develop state-of-the-art technology used by researchers and the industry to accelerate innovations that support data-intensive high-bandwidth applications and sensing. Keysight is also the first company to secure FCC licenses above 246 GHz and 275.5 GHz. The access to spectrum in sub-THz frequencies allows 6G innovators to realize high data throughput speed and ultra-low latency. These developments are likely to have positively impacted Keysight’s performance in the quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,302 million, which indicates growth from the year-ago quarter’s reported figure of $1,221 million. The consensus estimate for adjusted earnings per share is pegged at $1.67, suggesting an increase from $1.44 reported a year ago.
Earnings Whispers
Our proven model predicts an earnings beat for Keysight for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.48%, with the former pegged at $1.68 and the latter at $1.67. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
The Earnings ESP for The Walt Disney Company (DIS - Free Report) is +3.87% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on May 11.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +2.57% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 25.
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Will Top-Line Growth Buoy Keysight's (KEYS) Q2 Earnings?
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to report second-quarter fiscal 2022 (ended Apr 30, 2022) results on May 17, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.1%. It pulled off a trailing four-quarter earnings surprise of 7.5%, on average.
The Santa Rosa, CA-based company is expected to have recorded year-over-year higher revenues despite tight supply conditions, driven by solid demand for its first-to-market solutions across all end markets and regions.
Factors at Play
During the quarter, VTT Technical Research Centre of Finland Ltd. selected Keysight Open Radio Architect (KORA) solutions to build an open testing and integration facility, supporting an open radio access network (RAN) ecosystem. Keysight offers open RAN software platforms and built-in test automation capabilities, which help accelerate the verification of components, sub-systems and end-to-end systems across the product workflow. In addition, it introduced the Scienlab SL1302A software, which enables original equipment manufacturers to perform electric vehicle supply equipment interoperability tests based on the GB/T 34657.1 standard. These are likely to be reflected in the upcoming results.
The company augmented its 5G validation solutions portfolio during the to-be-reported quarter by incorporating advanced designs and improved capabilities to better serve its consumers. Keysight has upgraded its 5G Network Emulation Solution that leverages its proprietary UXM 5G Wireless Test Platform, an integrated and compact signaling test platform that emulates a 5G new radio (NR) network. The UXM 5G platform supports protocol compliance and functional key performance analytics across both sub-6GHz and mmWave spectra. The improved design features will offer extended frequency range coverage, flexible use of wider bandwidth resources, increased processing power to support more carrier aggregation and superior uplink capabilities for comprehensive multi-SIM support for 5G/4G network combinations.
Keysight also received the first Federal Communications Commission (“FCC”) Spectrum Horizons Experimental license for developing 6G technology in sub-Terahertz (THz) frequency bands, between 95 gigahertz (GHz) and 3 THz. The license enables Keysight to develop state-of-the-art technology used by researchers and the industry to accelerate innovations that support data-intensive high-bandwidth applications and sensing. Keysight is also the first company to secure FCC licenses above 246 GHz and 275.5 GHz. The access to spectrum in sub-THz frequencies allows 6G innovators to realize high data throughput speed and ultra-low latency. These developments are likely to have positively impacted Keysight’s performance in the quarter.
The Zacks Consensus Estimate for revenues is pegged at $1,302 million, which indicates growth from the year-ago quarter’s reported figure of $1,221 million. The consensus estimate for adjusted earnings per share is pegged at $1.67, suggesting an increase from $1.44 reported a year ago.
Earnings Whispers
Our proven model predicts an earnings beat for Keysight for the fiscal second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.48%, with the former pegged at $1.68 and the latter at $1.67. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Keysight Technologies Inc. Price and EPS Surprise
Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote
Zacks Rank: Keysight has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Ciena Corporation (CIEN - Free Report) is set to release quarterly numbers on Jun 2. It has an Earnings ESP of +6.91% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for The Walt Disney Company (DIS - Free Report) is +3.87% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on May 11.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +2.57% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 25.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.