Keysight Technologies Q2 earnings jump 162% with strong boost from 5G wireless rampup

Keysight Technologies Inc. (NYSE: KEYS) on Wednesday reported fiscal second-quarter profit jumped 161.9% from a year before.

The Santa Rosa-based electronic test and measurement hardware and software maker said net income was $186 million, or 99 cents per share, compared with $71 million, or 37 cents per share, in the second quarter of 2020.

Earnings, adjusted for one-time gains and costs, were $270 million, or $1.44 per share, compared with $148 million, or 78 cents per share, a year before.

“Keysight delivered an exceptional quarter and achieved all-time record orders, revenue, and free cash flow. Our second quarter results are indicative of our leadership position across a diverse set of markets,” said Ron Nersesian, Chairman, president and CEO, in the earnings announcement. “As an enabler of leading-edge disruptive innovation, Keysight is well-positioned to capitalize on multiple waves of technology that are fueling our growth for the long term.”

Orders grew 22% to reach $1.33 billion, compared with $1.09 billion last year.

Revenue grew 36% to reach $1.22 billion, compared with $895 million last year, or 33% on a core basis, which excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last 12 months.

Quarterly revenue from the company’s Communications Solutions Group was $877 million in the second quarter, up 34% over last year. Keysight said that was driven by ongoing investments by companies in the new 5G high-speed wireless communications technology; strong demand in space, satellite, signal monitoring; and early 6G research applications.

Electronic Industrial Solutions Group revenue was $344 million in the second quarter, up 42% over last year. That growth stemmed from strength in semiconductor measurement, general electronics, and automotive and energy solutions, particularly in Asia Pacific, the company said.

The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.34 per share.

Keysight posted revenue of $1.22 billion in the period, which also topped Street forecasts. Five analysts surveyed by Zacks expected $1.21 billion.

For the current quarter ending in August, Keysight expects its per-share earnings to range from $1.39 to $1.45.

The company said it expects revenue in the range of $1.21 billion to $1.23 billion for the fiscal third quarter.

Keysight shares have risen nearly 5% since the beginning of the year. In the final minutes of trading on Wednesday, just before the quarterly results were released, shares hit $138.22, a climb of 44% in the last 12 months.

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Associated Press contributed to this report.