Keysight Technologies Shares Tumble 10% on Soft 4Q Outlook
Shares of Keysight Technologies fell after the electronic-design and test-solutions company issued soft outlook for the current quarter.
The stock fell more than 10%, to $134.16, in premarket trading Friday. Over the past 12 months, the stock was already down about 16%.
The company is seeing softness in its Electronic Industrial Solutions Group and the Asian region, mostly related to semiconductor and other manufacturing, Chief Executive Satish Dhanasekaran told analysts on a conference call.
Demand for wafer-test solutions slowed down during the quarter, Dhanasekaran said, as demand for silicon photonics tests and proprietary interferometer systems remained high amid a focus from customers on artificial intelligence. "We expect these dynamics to continue over the next few quarters," he said.
The Santa Rosa, Calif., company reported roughly flat sales for the fiscal third quarter, which ended July 31. Profit fell, but adjusted earnings for the quarter topped analysts' expectations.
For the fiscal fourth quarter, Keysight is targeting adjusted earnings of $1.83 a share to $1.89 a share on revenue of $1.29 billion to $1.31 billion.
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