Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 8, 2017

Article Excerpt

KEYSIGHT TECHNOLOGIES INC., $43.35, New York symbol KEYS, makes devices for testing electronic equipment. In April 2017, the company paid $1.6 billion for California-based Ixia. That firm makes software to test wireless and computer networks. Thanks to those new operations, Keysight’s revenue for its fiscal 2017 fourth quarter, ended October 31, 2017, jumped 16.9%, to $878 million from $751 million a year earlier. That missed the consensus forecast of $885.5 million. If you exclude the $124 million contribution from this business and the negative impact of currency exchange rates, revenue rose 3.3%. Earnings in the quarter gained 22.7%, to $135 million from $110 million. Keysight sold shares to help pay for the Ixia acquisition. However, as the result of more shares outstanding, earnings per share rose at a slower rate of 10.9%, to $0.71 from $0.64. Those figures exclude costs related to the Ixia acquisition and other unusual items. On that basis, the company’s latest earnings beat the consensus estimate of $0.64 a share. Buying Ixia…