Keysight Technologies’ price movement
Keysight Technologies (KEYS) has a market cap of $5.3 billion. Keysight’s YTD (year-to-date) price movement was a mix of rises and falls in fiscal 2015. After the 4Q15 earnings report, KEYS fell by 0.32% to close at $31.13 per share on November 19, 2015. The price movement on a weekly, monthly, and YTD basis is 2.7%, -1.3%, and -7.8%, respectively.
Technically, the stock has broken the support and is trading below all moving day averages. Currently, KEYS is trading 2.4% below its 20-day moving average, 2.8% below its 50-day moving average, and 6.8% below its 200-day moving average.
The Guggenheim Spin-Off ETF (CSD) invests 5.0% of its holdings in Keysight. The ETF tracks an index of US-listed stocks spun off from corporate parents over the past 30 months. The index holds companies of all sizes. The YTD price movement of CSD is -9.0% as of November 18, 2015.
The market caps of Keysight Technologies’ (KEYS) competitors are as follows:
The performance of Keysight Technologies in fiscal 4Q15 and fiscal 2015
Keysight Technologies reported 4Q15 net revenue of $750.0 million, a fall of 1.6% when compared to net revenue of $762.0 million in 4Q14. Revenue of the aerospace and defense sector and the industrial, computer, and semi-conductor sector fell by 5.1% and 1.5%, respectively. The revenue of the communication sector rose by 3.2% in 4Q15 as compared to the prior-year period. The company’s orders rose by 2.6%, and operating income fell by 14.6% in 4Q15 as compared to the prior-year period. Its net income and EPS (earnings per share) rose to $277.0 million and $1.6, respectively, in 4Q15, as compared to net income and EPS of $101.0 million and $0.60, respectively, in 4Q14.
In fiscal 4Q15, some key activities of Keysight were as follows:
- It completed the acquisition of Anite, a supplier of software solutions for wireless research and development, for ~$600 million in cash. The company expects to grow and expand its wireless and software offerings due to the acquisition.
- The company has purchased Electroservices Enterprises, a company that provides test equipment service and solutions.
- It introduced 81607A, 81608A, and 81609A tunable laser sources, a range of modules for the Keysight 8164B lightwave measurement system, DDR4 and LPDDR4 debugging software tools that help memory designers perform JEDEC compliance measurements and determine the root cause of test failures, and a 50-GHz frequency extension to the M9393A PXle performance vector signal analyzer to provide frequency coverage.
Fiscal 2015 results
In fiscal 2015, the company reported net revenue of $2,856.0 million, a fall of 2.6% YoY (year-over-year). The company’s orders and operating income fell by 3.7% and 8.1%, respectively, in fiscal 2015. Its net income and EPS rose to $513.0 million and $3.00, respectively, in fiscal 2015, as compared to net income and EPS of $392.0 million and $2.35, respectively, in fiscal 2014.
Meanwhile, Keysight Technologies’ cash and cash equivalents and inventories fell by 40.4% and 2.2% in fiscal 2015. The company’s current ratio and debt-to-equity ratio fell to 2.27 and 1.69, respectively, in fiscal 2015, as compared to the current ratio and debt-to-equity ratio of 2.40 and 2.96, respectively, in fiscal 2014.
The company has projected the below figures for fiscal 1Q16:
- non-GAAP revenue in the range of $702 million to $742 million
- non-GAAP EPS in the range of $0.44 to $0.58
About Keysight Technologies
Keysight Technologies is an electronic measurement company. It provides solutions for wireless communications, aerospace and defense, and semiconductors through platforms, software, and consistent measurement science.