Keysight Technologies Inc (NYSE: KEYS) stock rose over 0.8% on 20th May, 2021 (As of 10:03:20 UTC-4 · USD; Source: Google finance) after the company has reported the adjusted net income of $270 million compared to $148 million in the comparable quarter of 2020.
The company has posted better than expected results for the second quarter of FY 21. In the second quarter, orders grew 22% to $1.33 billion from $1.09 billion in the previous-year period. The Second quarter reflects the strong double-digit order and revenue growth across all markets and regions. The outstanding results by both business segments reflects the power of Keysight’s diversified portfolio in 5G and beyond. The Electronic Industrial Solutions Group achieved its third consecutive quarter of record revenue with strong double-digit order and revenue growth in general electronics, semiconductor and automotive. The breadth of the contributions across multiple industries is reflects by the double-digit order and revenue growth in the general electronics business.
Further, in automotive, record orders resulted from improved macro conditions in increasing investments in EV and AV technologies. Keysight solutions portfolio for the automotive market continues to expand with new advanced technologies such as AC power emulation, millimeter wave radar, power semiconductor technology, automotive Ethernet, C-V2X and cybersecurity software systems. Aerospace, defense and government revenue rose 46%, driven by strong demand in space, satellite, signal monitoring, 5G and early 6G research applications. Commercial communications orders and revenue both increased double-digits, driven by the ongoing investments in 5G and 400-gig, 800-gig Ethernet solutions for data centers.
KEYS in the second quarter of FY 21 has reported the adjusted earnings per share of $1.44, beating the analysts’ estimates for the adjusted earnings per share of $1.34, according to analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 36 percent to $1.22 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $1.21 billion. The company has reported gross margin of 64%, which increased 170 basis points. Operating expenses for the quarter were of $467 million, resulting in operating margin of 26%. The company has ended the second quarter with approximately $2 billion in cash and cash equivalents and reported cash flow from operations of $402 million and free cash flow of $369 million, or 30% of revenue.
For the third quarter, the company expects adjusted earnings per share to be in the range of $1.39 and $1.45 and revenues expected to be in the range of $1.21 billion to $1.23 billion. The analysts currently expect earnings of $1.38 per share on revenues of $1.20 billion in the three-month period.