Keysight beats second-quarter estimates on strong demand in its communication business

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(Reuters) -Electronic equipment maker Keysight Technologies beat Wall Street expectations for second-quarter revenue and profit on Tuesday, driven by strong sales in its communications segment, sending its shares up 5% after the bell.

Keysight, is a provider of electronic design, testing and software products, among other equipment. These products are used for research, development and manufacturing by companies in the aerospace, semiconductor, automotive and related industries.

On an adjusted basis, the company reported per-share earnings of $1.70, compared to the consensus estimate of $1.65, according to data compiled by LSEG.

The company saw strong sales for its communications equipment from both commercial customers and clients in aerospace, defense and government sectors, with segment sales reaching $913 million, up 9% from last year.

The Santa Rosa, California-based company also reported 5% increase in quarterly revenue to $393 million in its electronic industrial business, helped by artificial intelligence-powered demand from semiconductor and general electronics companies.

This growth offset weakness in automotive demand, as the company faced ongoing challenges from muted R&D activity in EV battery development.

Keysight also raised its full-year revenue growth target to the midpoint of its long-term range of 5% to 7%, compared to a previous forecast at the lower end of that range.

Total revenue for the quarter rose 7.4%, reaching $1.31 billion, compared to analysts’ estimates of $1.28 billion.

(Reporting by Abhinav Parmar and Aishwarya Jain in Bengaluru; Editing by Mohammed Safi Shamsi)