Keysight Technologies Inc (NYSE:KEYS) stock rose 7.41% (As on May 17, 11:09:25 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. Non-GAAP net income was $380 million compared with $334 million, in the second quarter of 2022. As of April 30, 2023, cash and cash equivalents totaled $2.50 billion. Orders declined 10 percent, or 8 percent on a core basis. Operational excellence, combined with favorable software and services mix, resulted in record gross margins of 67 percent, operating margin of 30 percent and record free cash flow of $370 million. The Electronic Industrial Solutions Group delivered record Q2 orders, driven by demand in automotive and general electronics. In automotive, the company delivered strong double-digit revenue growth and secured new strategic wins with two large OEMs. Building on the strong position in this market, the company introduced further automation and protocol test capabilities for the industry-leading EV charging test portfolio, allowing customers to accelerate their innovation. General electronics revenue grew by double-digits to reach an all-time high. Semiconductor solutions delivered double-digit revenue growth, driven by continued fab investments in new wafer capacity and advanced nodes.

KEYS in the second quarter of FY 23 has reported the adjusted earnings per share of $2.12, beating the analysts’ estimates for the adjusted earnings per share of $1.95. The company had reported the adjusted revenue growth of 3 percent to $1.39 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $1.38 billion.

Moreover, Communications Solutions Group (CSG) reported revenue of $937 million in the second quarter, down 3 percent over last year, reflecting a 7 percent decline in commercial communications, while aerospace, defense, and government increased 7 percent driven by radar, spectrum operations, space and satellite, and research in 5G and 6G technologies. Electronic Industrial Solutions Group (EISG) reported revenue of $453 million in the second quarter, up 17 percent over last year, driven by growth across general electronics, semiconductor solutions, and next-generation automotive and energy technologies.

Keysight’s third fiscal quarter of 2023 revenue is expected to be in the range of $1.37 billion to $1.39 billion. Non-GAAP earnings per share for the third fiscal quarter of 2023 are expected to be in the range of $2.00 to $2.06. Analysts had forecast earnings of $1.96 a share on revenue of $1.38 billion.