Keysight stock drops following disappointing outlook

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Keysight stock drops following disappointing outlook
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Keysight Technologies shares fell after hours Thursday after the company’s weaker-than-expected outlook overshadowed its earnings beat.

Keysight Technologies Inc. shares fell in the extended session Thursday after the electronic-design and test-solutions company’s weaker-than-expected outlook overshadowed its earnings beat.

Keysight KEYS, -0.50% shares fell as much as 7% after hours, following a 0.5% decline to close the regular session at $150.05. Year to date, Keysight shares are down 12.3%, compared with a 36.1% gain by the PHLX Semiconductor Index SOX, -0.97%, a 13.8% rise for the S&P 500 SPX, -0.77% and a 27.2% gain by the tech-heavy Nasdaq Composite Index COMP, -1.17%.

Keysight forecast fiscal fourth-quarter earnings of $1.83 to $1.89 a share on revenue between $1.29 billion and $1.31 billion. For the year, the company forecast a midpoint earnings target of $8.19 a share on revenue of about $5.45 billion.Analysts had estimated $2 a share on revenue of $1.39 billion for the fourth quarter, and $8.17 a share on revenue of $5.55 billion for the year.

The company reported third-quarter net income of $288 million, or $1.61 a share, compared with $338 million, or $1.87 a share, in the year-ago period.Adjusted for stock-based compensation, acquisition-related and other costs, earnings were $2.19 a share, compared with $2.01 a share in the year-ago period. Analysts surveyed by FactSet had forecast earnings of $2.04 a share.

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