Hot Tech stock to watch: Keysight Technologies Inc (NYSE: KEYS)

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Keysight Technologies Inc (NYSE: KEYS) stock rose over 1.8% on Feb 22nd, 2019 (as of 10:56 am GMT-5; Source: Google finance) after the company posted better than expected results for the first quarter of FY 19. KEYS delivered $1.016 billion in orders in Q1. Orders were up 5% in total and 7% on a core basis, which excludes the impact of currency movement and two small divestitures completed within the last year. The company reported a gross margin of 62% and operating expenses of $420 million resulting in an operating margin of 20%. KEYS also achieved the net income of $176 million during the quarter.

Meanwhile, in the automotive and energy market, the company continued to make great strides. Customer demand remained high in Q1, and the company delivered the ninth consecutive quarter of double-digit order growth. Auto manufacturers and suppliers have continued to invest in critical new capabilities and are increasingly turning to Keysight as their strategic innovation partner. As a result, the company continue to grow the engagements within top customers and add new Tier 1 accounts. In the first quarter, the company had announced the collaboration with BMW Group to support its Battery Cell Competence Centre in Munich. Keysight will equip their laboratories with battery test systems and provide services for effective laboratory workflow management and operation. Further, in January, the company had opened a new automotive center in Nagoya, Japan. Keysight now has opened four automotive centers aligned with each of the major global automotive customer ecosystems: Detroit, Michigan in the United States; Boblingen, Germany in Europe; and Nagoya, Japan and Shanghai, China in Asia.

 

In 5G, the company achieved another record quarter of 5G orders and delivered strong double-digit growth in Q1. Network operators, NEMs, device makers and chipset companies are all investing for the early ramp of commercial 5G networks. The Communications Solutions Group generated total revenue of $623 million, up 25%, while delivering record gross margin of 61.1% and operating margin of 22%.

KEYS in the first quarter of FY 19 has reported the adjusted earnings per share of 93 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents. The company had reported the adjusted revenue growth of 20 percent to $1.01 billion in the first quarter of FY 19, beating the analysts’ estimates for revenue by 2.84%.

For the second fiscal quarter of 2019, KEYS expect the non-GAAP revenue to be in the range of $1,060 million to $1,080 million. Non-GAAP earnings per share for the second fiscal quarter of 2019 are expected to be in the range of $0.93 to $0.99.

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