$KEYS (+1,5%) Keysight Technologies reported earnings

Q4 FY2024 results ended October 31st, 2024

- Revenue: $1.29B, -2% YoY

- Net loss: $73M (vs net income of $226M in Q4 2023)

- EPS: -$0.42 vs $1.28 in Q4 2023

- Orders: $1.35B, +1% YoY

CEO Satish Dhanasekaran: "Keysight executed well and delivered fourth quarter revenue and earnings per share above the high end of guidance under market conditions which remained consistent with our expectations. As we look ahead, the strength of our differentiated portfolio, deep engagement with customers, and the accelerating pace of technology innovation give us confidence in our ability to outperform as markets recover."

Segment Revenue:

- Communications Solutions Group: $894M, flat YoY

- Electronic Industrial Solutions Group: $393M, -6% YoY

Other Metrics:

- Gross Margin: 62.3% vs 64.4% in Q4 2023

- Operating Margin: 17.9% vs 24.2% in Q4 2023

- Free Cash Flow: $328M vs $340M in Q4 2023

- Cash and cash equivalents: $1.80B

Business highlights:

- 4% growth in commercial communications driven by AI-related investment

- Aerospace, defense, and government declined 6% versus record high quarter last year

- Electronic Industrial affected by ongoing constraint in manufacturing-related customer spending

- $315M tax expense related to new Singapore tax incentive impacted net income

Outlook (Q1 FY2025):

- Revenue: $1.265B-$1.285B

- Non-GAAP EPS: $1.65-$1.71