Keysight Technologies Inc (NYSE:KEYS) stock fell 7.51% (As on February 21, 11:44:09 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. Communications Solutions Group (CSG) reported revenue of $839 million in the first quarter, down 11 percent over last year, reflecting a 14 percent decline in commercial communications, while aerospace, defense, and government decreased 5 percent. Electronic Industrial Solutions Group (EISG) reported revenue of $420 million in the first quarter, down 5 percent over last year, reflecting continued constraint in semiconductor and manufacturing-related customer spending, partially offset by the addition of ESI. Non-GAAP net income was $286 million, or $1.63 per share, compared with $363 million, or $2.02 per share in the first quarter of 2023. Cash flow from operations was $328 million, compared to $366 million last year. Free cash flow was $281 million, compared to $306 million in the first quarter of 2023. As of January 31, 2024, cash and cash equivalents totaled $1.75 billion. Orders totaled $1.2 billion, with a modest improvement expected in the second half of the fiscal year. The acquisition of ESI was completed ahead of schedule, bolstering Keysight’s simulation and emulation software solutions. The acquisition of ESI enhances Keysight’s software solutions, improving its simulation and emulation capabilities. The company maintains a cautious outlook for the second half, with no strong recovery anticipated. Operating margin hit 28%, and gross margin reached a record 67%, indicating strong financial performance. There is positive growth opportunities in ESI business within Keysight and in vertical industry expansions using AI and ML.

KEYS in the first quarter of FY 24 has reported the adjusted earnings per share of $1.63, beating the analysts’ estimates for the adjusted earnings per share of $1.59, according to Zacks Investment Research. The company had reported the adjusted revenue growth to $1.26 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.25 billion.

For the current quarter ending in April, Keysight expects its per-share earnings to range from $1.34 to $1.40. The company expects revenue to be in the range of $1.19 billion to $1.21 billion for the fiscal second quarter. The second half of the year is expected to see flat revenue in Q3 and mid-single-digit growth in Q4. The second half of the year is expected to see flat revenue in Q3 and mid-single-digit growth in Q4.