| | | If they make $5 next year while growing earnings at a huge rate....
Even after taking profits, it is my 2nd largest position by 0.1% and that may change to #1 tomorrow....
Keysight Technologies Reports Fourth Quarter 2019 Results
NOVEMBER 26, 2019
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Achieved Record Orders, Revenue and Operating Margin
SANTA ROSA, Calif.--(BUSINESS WIRE)-- Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the fourth fiscal quarter of 2019 ended October 31, 2019.
“Keysight delivered a very strong finish to the year with both revenue and earnings exceeding the high-end of our guidance for the quarter. Record-setting quarterly and annual revenue was driven by growth across our portfolio of differentiated solutions, and broad-based momentum across multiple end markets. We continued to execute on our strategy and growth initiatives, while exceeding our commitments to customers and shareholders,” said Ron Nersesian, Keysight president and CEO.
Fourth Quarter Financial Summary
- GAAP revenue grew 7 percent to reach $1.120 billion, when compared with $1.047 billion last year.
- Non-GAAP revenue grew 7 percent to reach $1.122 billion. Non-GAAP core revenue, which also excludes the impact of foreign currency changes and revenue associated with businesses acquired or divested within the last twelve months, increased 7 percent.
- GAAP net income was $195 million, or $1.02 per share, compared with GAAP net loss of $114 million, or $(0.61) per share, in the fourth quarter of 2018.
- Non-GAAP net income was $254 million, or $1.33 per share, compared with $193 million, or $1.01 per share in the fourth quarter of 2018.
- As of October 31, 2019, cash and cash equivalents totaled $1.598 billion.
Fiscal year 2019 Financial Summary
- GAAP revenue grew 11 percent over last year and totaled $4.303 billion. Non-GAAP revenue grew 10 percent to reach $4.312 billion. Non-GAAP core revenue grew 11 percent year-over-year.
- GAAP net income was $621 million, or $3.25 per share, compared with $165 million, or $0.86 per share in fiscal 2018. Non-GAAP net income was $902 million, or $4.72 per share, compared with $618 million, or $3.24 per share in fiscal 2018.
- Keysight acquired approximately 2.1 million shares in the open market at an average share price of $76.32, for a total consideration of $160 million during fiscal year 2019. Keysight has $410 million remaining under the current $500 million share repurchase authorization implemented in May 2019.Reporting Segments
Communications Solutions Group (CSG)CSG reported record revenue of $706 million in the fourth quarter, up 7 percent, driven by continued strength across the 5G wireless ecosystem and strength in US aerospace, defense and government investment.
Electronic Industrial Solutions Group (EISG)EISG reported revenue of $284 million in the fourth quarter, up 3 percent, driven by strength in the broad portfolio of products that serve our general electronics market and on-going investments in next-generation automotive and energy technologies, partially offset by semiconductor measurement solutions.
Ixia Solutions Group (ISG)ISG revenue grew 15 percent in the fourth quarter to $132 million. Double-digit revenue growth in both network test and network visibility solutions was driven by investments in 400GE and enterprise networks.
Outlook
Keysight’s first fiscal quarter of 2020 revenue is expected to be in the range of $1.045 billion to $1.065 billion.
Non-GAAP earnings per share for the first fiscal quarter of 2020 are expected to be in the range of $1.04 to $1.10, which exclude items that pertain to future events and are not currently estimable with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided. Further information is discussed in the section titled “Use of Non-GAAP Financial Measures” below.
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