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Keysight Stock Is the S&P 500's Top Decliner Today. Here's Why.Keysight Stock Is the S&P 500's Top Decliner Today. Here's Why. Palumbo, Angela. Barron's (Online); New York Keysight Technologies stock was sinking Wednesday after the electronics maker offered a disappointing forecast for sales, citing "moderating demand." Keysight shares (ticker: KEYS) tumbled 15% Wednesday, making the shares the worst performer in the S&P 500 and putting the stock on pace for a record daily decline, according to Dow Jones Market Data. In late morning, it was trading at $155.35, which would be the stock's lowest closing level since October. Keysight (ticker: KEYS) reported first-quarter earnings of $2.02 a share from sales of $1.38 billion. Analysts surveyed by FactSet were expecting earnings of $1.85 a share from revenue of $1.37 billion. What hammered the stock was word from management that revenue this quarter is expected to be between $1.37 billion and $1.39 billion. Analysts surveyed by FactSet were expecting sales to be $1.41 billion. "We saw customers exercise caution in response to macroeconomic uncertainty," Chief Executive Satish Dhanasekaran said on a conference call to discuss the results. "This was most notable among our largest customers in commercial communications, who were impacted by [a] sharp demand decline in consumer electronics and computing segments." Management believes the problems will persist, but Citi analyst Jim Suva says it makes sense to buy the stock now, given the plunge in the price. He rates the shares at Buy, with a price target of $225. "We believe the company will continue to set conservative guidance targets that they will continue to meet and exceed and continue their strong investor credibility," Suva wrote in a research note Wednesday. |
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