KEYS
Keysight just put up a flex
Keysight Technologies came in hot on Tuesday, reporting Q2 earnings of $2.87 per share on $1.72 billion in revenue. That beat Wall Street’s expectations and, more importantly, marked what management called the strongest quarter in company history. If you’re keeping score at home, that’s the kind of sentence CFOs dream about.
The real prize: the forward look
The bigger tell for investors wasn’t just the beat — it was the guidance. Keysight said it expects third-quarter EPS of $2.43 to $2.49, well above the $2.14 analysts were modeling, and revenue of $1.73 billion to $1.75 billion versus the Street’s $1.64 billion.
That’s why the stock got a little extra love from analysts afterward:
- Baird kept its Outperform rating and raised its price target from $375 to $385
- Wells Fargo kept its Overweight rating and lifted its target from $300 to $390
Why investors should care
When analysts start hiking targets right after earnings, it usually means the quarter wasn’t just good — it changed the story. For Keysight, the story now looks a lot like: stronger demand, better execution, and a business that’s still finding ways to surprise people on both revenue and profits.
The stock was up about 1.1% in Wednesday trading, which is a pretty polite reaction for a company that just called its quarter the best in its history. Big picture: the market may still be deciding how much to pay for Keysight’s growth, but the company just handed it a fresh argument for a higher number.