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Keysight Stock Gains on Strong Financial Outlook. Analyst Likes 5G Exposure.Keysight Stock Gains on Strong Financial Outlook. Analyst Likes 5G Exposure. Vanjani, Karishma . Barron's (Online) ; New YorkKeysight Technologies stock shot up Wednesday morning after the manufacturer of electronics test and measurement equipment offered investors a healthy financial outlook in its second-quarter earnings report. The company, in a press release on Tuesday after markets closed, said it expects third-quarter adjusted profit of between $2 a share and $2.06 a share. Analysts tracked by FactSet were looking for $2.02 per share. Revenue is expected to be $1.37 billion to $1.39 billion also ahead of the $1.382 billion in estimates. The electronic maker's stock (ticker: KEYS) has been pressured this year. CEO Satish Dhanasekaran in a February call discussing earnings said demand has been impacted by customers exercising caution given macroeconomic uncertainty. The biggest hit was seen among the largest customers in the commercial communications segment, he added. The stock is down about 14% this year but has gained 8.8% to $158.99 in premarket trading on Wednesday, etching itself as the best performer within the S&P 500. Susquehanna International Group analyst Mehdi Hosseini reiterated his bullish view on the stock Wednesday. Exposure to key growth areas like 5G-plus and high-speed networking in a challenging macro tape is helping the stock more broadly, he wrote. "We think the downside risk is fully reflected in the share price," Hosseini added, reiterating his Positive rating and price target of $208, which implies a 31% gain from current levels. Keysight reported second-quarter earnings of $2.12 a share on revenue of $1.39 billion. Analysts surveyed by FactSet had forecast earnings of $1.95 a share on revenue of $1.38 billion. |
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