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Preview: Keysight Technologies's Earnings

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Keysight Technologies (NYSE:KEYS) announces its next round of earnings this Thursday, February 18. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Keysight Technologies reporting earnings of $1.37 per share on revenue of $1.15 billion. Keysight Technologies reported a per-share profit of $1.26 when it published results during the same quarter last year. Sales in that period totaled $1.09 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.

The Wall Street estimate would represent a 8.73% increase in the company's earnings. Sales would be up 5.02% from the same quarter last year. Here is how the Keysight Technologies's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 1.46 0.83 1.20 1.07
EPS Actual 1.62 1.19 0.78 1.26
Revenue Estimate 1.18 B 927.45 M 1.11 B 1.06 B
Revenue Actual 1.22 B 1.01 B 892.00 M 1.09 B

Stock Performance

Shares of Keysight Technologies were trading at $150.91 as of February 16. Over the last 52-week period, shares are up 52.51%. Given that these returns are generally positive, long-term shareholders are probably satisfied 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: BZI-EPEarnings