Why Is Keysight Technologies (KEYS) Stock Shooting Higher Afterhours

Keysight Technologies Inc (NYSE:KEYS) reported third-quarter growth of 10% year-over-year to $1.38 billion, +13% on a core basis, beating the consensus of $1.34 billion.
Communications Solutions Group reported revenue of $970 million (+11% Y/Y), with strength in 5G, O-RAN, 400G, 800G, and high-speed digital applications, and cyber, space and satellite solutions.
Electronic Industrial Solution's revenue was $406 million (+10% Y/Y).
Orders grew 12% Y/Y to $1.46 billion, or 14% on a core basis.
Adjusted EPS was $2.01, beating the consensus of $1.79.
The operating income increased 25.7% Y/Y to $357 million, and the margin expanded by 315 bps to 25.9%.
Net cash provided by operating activities year-to-date totaled $746 million, compared to $954 million a year ago.
Keysight repurchased ~1.6 million shares in the open market at an average share price of $139.46, for $228 million.
As of July 31, 2022, KEYS held cash and cash equivalents of $1.85 billion.
4Q22 Outlook: Keysight expects revenue of $1.38 billion to $1.40 billion, vs. a consensus of $1.38 billion, and Non-GAAP EPS of $1.94 to $2.00, vs. a consensus of $1.89.
FY22 Outlook: The company says revenue growth is expected to approach 9%, and at the midpoint of fourth quarter guidance, non-GAAP earnings per share growth for the fiscal year 2022 is expected to be 20%.
Price Action: KEYS shares are trading higher by 3.37% at $175 during the post-market session on Wednesday.

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