Research Desk Line-up: Hurco Cos. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Keysight Technologies, Inc. (NYSE: KEYS), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=KEYS, following the Company's announcement of its third fiscal quarter 2017 financial results on August 31, 2017. The electronic measurement technology Company topped earnings expectation and provided guidance for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Scientific & Technical Instruments industry. Pro-TD has currently selected Hurco Companies, Inc. (NASDAQ: HURC) for due-diligence and potential coverage as the Company reported on September 08, 2017, its financial results for Q3 FY17 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Hurco Cos. when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on KEYS; also brushing on HURC. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=KEYS
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Earnings Reviewed
For the third fiscal quarter of 2017 ended July 31, 2017, Keysight's GAAP revenue grew 16% to reach $832 million compared to revenue of $715 million in Q3 FY16. The Company's non-GAAP revenue, which excludes the impact of fair value adjustment to acquisition-related deferred revenue balances, grew 20% to reach $863 million compared to $718 million in the year-earlier same quarter. Keysight's non-GAAP core revenue, which excludes the impact of currency and revenue from acquisitions completed within the last twelve months, grew 4% on a y-o-y basis. The Company's revenue number lagged behind analysts' estimates of $854.8 million.
For Q3 FY17, Keysight's gross margin was 60.9%, reflecting y-o-y increase of 220 basis points, driven by the addition of Ixia. The Company's operating expenses totaled $362 million compared to $281 million in the year-earlier corresponding quarter, reflecting a full quarter of Ixia's expenses and increased sales investment. This resulted in Q3 FY17 operating margin of 19.0%, which was down 50 basis points when compared with 19.5% in Q3 FY16.
During Q3 FY17, Keysight's GAAP net loss was $18 million, or a loss of $0.10 per share, compared to net income of $91 million, or $0.53 per share, in Q3 FY16. The Company's non-GAAP net income was $115 million, or $0.61 per share, compared to $108 million, or $0.63 per share, in the prior year's same quarter. Keysight's earnings beat Wall Street's estimates of $0.60 per share.
Keysight's Segment Results
During Q3 FY17, Communications Solutions Group's (CSG) revenue was $418 million compared to $424 million in Q3 FY16. Growth in commercial communications and 5G was offset by a decline in aerospace, defense, and government.
For Q3 FY17, the Electronic Industrial Solutions Group's (EISG) revenue was $218 million, up 14% compared to $191 million in Q3 FY16. EISG's growth was driven by strong demand for general electronics, semiconductor, and automotive and energy solutions.
During Q3 FY17, Ixia Solutions Group's (ISG) revenue totaled $120 million. ISG's revenue was impacted by continued challenging market conditions with its network equipment manufacturers' customers in the US, while demand for visibility and application and security solutions was strong among service provider customers.
The Services Solutions Group's (SSG) revenue in Q3 FY17 grew 4% on a y-o-y basis to $107 million compared to $103 million in Q3 FY16, driven by remarketed solution sales.
Cash Matters
Keysight ended Q3 FY17 with $873 million in cash and cash equivalents. The Company's cash flow from operations in the reported quarter was $98 million, while capital purchases totaled $21 million, resulting in free cash flow of $77 million. In addition, Keysight paid down $240 million of debt related to the Ixia acquisition in Q3 FY17.
Outlook
Keysight's Q4 FY17 GAAP revenue is expected to be in the range of $850 million to $880 million and non-GAAP revenue is expected to be in the band of $875 million to $905 million. The Company's non-GAAP earnings per share for the upcoming quarter is expected to be in the range of $0.59 to $0.69.
Stock Performance
At the closing bell, on Tuesday, September 19, 2017, Keysight Technologies' stock marginally declined 0.70%, ending the trading session at $41.33. A total volume of 1.22 million shares have exchanged hands, which was higher than the 3-month average volume of 971.14 thousand shares. The Company's stock price soared 8.91% in the last three months, 12.89% in the past six months, and 34.85% in the previous twelve months. Moreover, the stock surged 13.02% since the start of the year. The stock is trading at a PE ratio of 30.80 and currently has a market cap of $7.69 billion.
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