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Preview: Keysight Technologies's Earnings

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Keysight Technologies (NYSE: KEYS) announces its next round of earnings this Wednesday, November 18. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Keysight Technologies EPS will likely be near $1.46 while revenue will be around $1.18 billion, according to analysts. In the same quarter last year, Keysight Technologies announced EPS of $1.33 on revenue of $1.12 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 9.77%. Sales would be up 5.17% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.83 1.20 1.07 1.18
EPS Actual 1.19 0.78 1.26 1.33
Revenue Estimate 927.45 M 1.11 B 1.06 B 1.09 B
Revenue Actual 1.01 B 892.00 M 1.09 B 1.12 B

Stock Performance

Shares of Keysight Technologies were trading at $117.91 as of November 16. Over the last 52-week period, shares are up 7.84%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Keysight Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings