Keysight beats quarterly forecast estimates on strong demand from AI data centers

KEYS +2.87% A +1.55%

(Reuters) -Electronic equipment maker Keysight Technologies (KEYS) forecast first-quarter revenue and profit ahead of Wall ​Street estimates on Monday, sending its shares up more ‌than 13% in premarket trading on Tuesday.

Keysight, which provides electronic design, ‌test and simulation software, has experienced growth driven by sustained demand for its products by data centers as they expand to support AI workloads.

Its products include oscilloscopes, protocol analyzers and digital multimeters, ⁠among other offerings.

The Santa ‌Rosa, California-based company expects quarterly revenue in the range of $1.53 billion to $1.‍55 billion, and adjusted earnings of about $1.95 to $2.01 per share.

This comes ahead of average analysts estimates of revenue of $1.​43 billion and adjusted profit of $1.83 per share, ‌according to analysts' estimates compiled by LSEG.

The company, which was separated from Agilent Technologies in 2014, also beat Wall Street estimates for fourth-quarter revenue and profit, helped by strong performance in its communications solutions unit.

The unit's revenue rose ⁠11% to $990 million compared ​with $894 million a year earlier, ​driven by continued investments in AI data center infrastructure, non-terrestrial network applications and defense modernization.

The company ‍reported fourth-quarter ⁠revenue of $1.42 billion, above analysts' estimates of $1.38 billion.

Its adjusted profit per share for the quarter ⁠ended October 31 came at $1.91, beating analysts' estimates of ‌$1.83.

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(Reporting by Abhinav Parmar and Parth ‌Chandna; Editing by Vijay Kishore)