Keysight Technologies Inc. (KEYS) reported its first-quarter 2024 financial results, causing the company’s shares to trade lower in the premarket session on Wednesday. The company’s adjusted earnings per share of $1.63 beat the street view of $1.59, while its quarterly revenues of $1.259 billion surpassed the analyst consensus of $1.248 billion.
However, despite beating earnings expectations, revenues fell from $1.38 billion in the year-ago period. The Communications Solutions Group reported revenue of $839 million, down 11% year over year, while the Electronic Industrial Solutions Group reported revenue of $420 million, down 5% year over year. Cash flow from operations was $328 million, compared to $366 million last year, and free cash flow was $281 million, compared to $306 million in the year-ago period. As of January 31, 2024, cash and cash equivalents totaled $1.75 billion.
Looking ahead, Keysight’s second-quarter revenue is expected to be between $1.19 billion and $1.21 billion, lower than the estimated $1.25 billion. Non-GAAP earnings per share for the second fiscal quarter of 2024 are expected to be between $1.34 and $1.40, below the estimate of $1.61.
As a result of these financial results, KEYS shares are trading lower by 6.75% to $144.00 premarket on the last check Wednesday. Investors will be closely monitoring the company’s performance in the coming quarters to see if it can turn around its revenue decline and meet or exceed earnings expectations.
