Keysight Technologies Inc. shares fell in the extended session Thursday after the electronic-design and test-solutions company’s weaker-than-expected outlook overshadowed its earnings beat.
Keysight
KEYS,
-13.97%
shares fell as much as 7% after hours, following a 0.5% decline to close the regular session at $150.05. Year to date, Keysight shares are down 12.3%, compared with a 36.1% gain by the PHLX Semiconductor Index
SOX,
+0.52%,
a 13.8% rise for the S&P 500
SPX,
-0.05%
and a 27.2% gain by the tech-heavy Nasdaq Composite Index
COMP,
-0.16%.
Keysight forecast fiscal fourth-quarter earnings of $1.83 to $1.89 a share on revenue between $1.29 billion and $1.31 billion. For the year, the company forecast a midpoint earnings target of $8.19 a share on revenue of about $5.45 billion.
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Analysts had estimated $2 a share on revenue of $1.39 billion for the fourth quarter, and $8.17 a share on revenue of $5.55 billion for the year.
The company reported third-quarter net income of $288 million, or $1.61 a share, compared with $338 million, or $1.87 a share, in the year-ago period.
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Adjusted for stock-based compensation, acquisition-related and other costs, earnings were $2.19 a share, compared with $2.01 a share in the year-ago period. Analysts surveyed by FactSet had forecast earnings of $2.04 a share.
Revenue was flat at around $1.38 billion, Keysight reported, in line with the analyst consensus.
“Despite near-term macro challenges, Keysight’s diversified business, strong customer engagement through our differentiated solutions portfolio, and durable operating model give us confidence in our ability to capitalize on the long-term secular growth trends of our markets, as well as outperform in a variety of market conditions,” said Satish Dhanasekaran, Keysight’s chief executive, in a statement.
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