Why Keysight Technologies Shares Are Falling Wednesday

Keysight Technologies Inc. KEYS shares are trading lower in the premarket session on Wednesday.

On Tuesday, after the closing bell, the company reported first-quarter 2024 adjusted earnings per share of $1.63, beating the street view of $1.59. Quarterly revenues of $1.259 billion beat the analyst consensus of $1.248 billion.

Revenues, however, fell from $1.38 billion in the year-ago period. Communications Solutions Group (CSG) reported revenue of $839 million, down 11% year over year. 

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. 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.

Outlook: Keysight’s second-quarter revenue is expected to be $1.19 billion-$1.21 billion (estimate at $1.25 billion).

Non-GAAP earnings per share for the second fiscal quarter of 2024 are expected to be $1.34-$1.40 (estimate at $1.61).

Price Action: KEYS shares are trading lower by 6.75% to $144.00 premarket on the last check Wednesday.