Keysight Beats Q3 Estimates, Multiple Analysts Raise Price Targets

Keysight Technologies Inc. reported better-than-expected fiscal third-quarter financial results on Tuesday and issued strong fourth-quarter guidance.

The company reported adjusted earnings per share of $3.07, surpassing the analyst consensus estimate of $2.48. Quarterly revenue reached $1.85 billion, exceeding the street estimate of $1.74 billion.

"Keysight's record third-quarter results and outlook reflect the growing relevance of our strategy and portfolio, which enable customers to solve complex engineering challenges across our end markets," said Satish Dhanasekaran, Keysight's President and CEO.

Keysight expects fourth-quarter adjusted earnings per share of $3.34 to $3.40, compared to analyst estimates of $2.70, with revenue projected between $1.93 billion and $1.95 billion, versus estimates of $1.81 billion.

Keysight shares fell 6.1% on Wednesday, trading at $320.13.

Analysts Adjust Price Targets

The following analysts adjusted their price targets on Keysight following the earnings release.

Baird analyst Richard Eastman maintained an Outperform rating on the stock, raising the price target from $385 to $410.

Susquehanna analyst Mehdi Hosseini maintained a Positive rating on the stock, raising the price target from $425 to $440.

Wells Fargo analyst Aaron Rakers maintained an Overweight rating on the stock, raising the price target from $390 to $405.

Barclays analyst Tim Long maintained an Overweight rating on the stock, raising the price target from $387 to $429.

Truist Securities analyst Matthew Niknam maintained a Hold rating on the stock, raising the price target from $376 to $400.

Considering buying KEYS stock? Here's what analysts think.