Keysight Technologies’ Q1 earnings rise 5%, boosted by late 2020 orders

Keysight Technologies Inc. (NYSE: KEYS) on Thursday reported fiscal first-quarter earnings rose 5.5% to $172 million from a year before.

The Santa Rosa-based electronic test and measurement technology company said it had net income of 92 cents per share in the quarter ended Jan. 31, up from 86 cents. Earnings, adjusted for non-recurring costs and stock option expense, were $1.43 per share, up from $1.26.

“Order and revenue growth in the quarter was driven by strong execution and robust demand for our broad portfolio of differentiated solutions across all regions,” said Ron Nersesian, chairman, president and CEO in the results announcement. “We enter the year with momentum across multiple end markets and confidence in our revenue and earnings growth trajectory."

The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.38 per share.

The company posted quarterly revenue of $1.18 billion in the period, up 8% from a year before. That also topped Street forecasts. Five analysts surveyed by Zacks expected $1.16 billion. Orders were up 7% for the quarter.

The company’s Communications Solutions Group reported revenue of $852 million in the first quarter, up 4% from a year before. Keysight said that was driven by robust year-end spending in aerospace, defense and government across all major regions.

The Electronic Industrial Solutions Group reported quarterly revenue of $328 million in the first quarter, up 18%. That rise was attributed to strength in semiconductor measurement and general electronics solutions, particularly in the Asia Pacific region.

For the current quarter ending in May, Keysight expects its per-share earnings to range from $1.29 to $1.35.

The company said it expects revenue in the range of $1.19 billion to $1.21 billion for the fiscal second quarter.

Keysight shares have climbed 12% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $148.06, an increase of 52% in the last 12 months.