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Jul 31, 2020

Keysight Technologies Q3 2020 Earnings Report

Keysight Technologies' third quarter results surpassed expectations due to increased production capacity and strong business resilience.

Key Takeaways

Keysight Technologies reported stronger-than-expected third-quarter results with sequential revenue growth driving strong operating margin and cash flow. Despite a challenging macroeconomic environment, the company demonstrated exceptional resilience and expects year-over-year revenue and earnings growth in the fourth quarter.

Orders totaled $1,067 million, a decrease of 4% compared to the previous year.

GAAP revenue reached $1,011 million, while non-GAAP revenue decreased by 7% on a core basis.

GAAP net income was $176 million, or $0.93 per share, compared to $159 million, or $0.83 per share, in Q3 2019.

Cash and cash equivalents totaled $1,697 million as of July 31, 2020.

Total Revenue
$1.01B
Previous year: $1.09B
-7.4%
EPS
$1.19
Previous year: $1.25
-4.8%
Gross Profit
$606M
Previous year: $643M
-5.8%
Cash and Equivalents
$1.7B
Previous year: $1.39B
+21.7%
Free Cash Flow
$151M
Previous year: $244M
-38.1%
Total Assets
$7.16B
Previous year: $6.35B
+12.8%

Keysight Technologies

Keysight Technologies

Keysight Technologies Revenue by Segment

Forward Guidance

Keysight anticipates fourth fiscal quarter 2020 revenue to be between $1,170 million and $1,190 million, with non-GAAP earnings per share expected to range from $1.42 to $1.48.

Revenue & Expenses

Visualization of income flow from segment revenue to net income