Dj Keysight Technologies Inc. Stock Underperforms Tuesday When Compared To Competitors

Camtek (CAMT) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this maker of automatic optical inspection and process enhancement systems would post earnings of $0.65 per share when it actually produced earnings of $0.66, delivering a surprise of 1.54%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Camtek, which belongs to the Zacks Electronics - Measuring Instruments industry, posted revenues of $112.34 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.25%. This compares to year-ago revenues of $80.47 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Camtek shares have added about 13.4% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for Camtek?

While Camtek has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Camtek: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $112.55 million in revenues for the coming quarter and $2.71 on $420.95 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Measuring Instruments is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Keysight (KEYS), has yet to report results for the quarter ended October 2024. The results are expected to be released on November 19.

This electronic measurement technology company is expected to post quarterly earnings of $1.57 per share in its upcoming report, which represents a year-over-year change of -21.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Keysight's revenues are expected to be $1.25 billion, down 4.4% from the year-ago quarter.

Zacks Investment Research

Arista Networks, Inc. ANET reported strong third-quarter 2024 results, with revenues and adjusted earnings soaring year over year, driven by robust demand trends. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength ensured top-line expansion, while steady margin improvement contributed to earnings growth. Both the bottom and the top lines beat the respective Zacks Consensus Estimate.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net Income

GAAP net income in the reported quarter improved to $747.9 million or $2.33 per share from $545.3 million or $1.72 per share in the year-ago quarter, mainly propelled by higher revenues.

On a non-GAAP basis, net income was a record high at $769.1 million or $2.40 per share compared with $581.4 million or $1.83 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by 31 cents.

Arista Networks, Inc. Price, Consensus and EPS Surprise

Arista Networks, Inc. price-consensus-eps-surprise-chart | Arista Networks, Inc. Quote

Revenues

Revenues surged to $1.81 billion from $1.51 billion in the prior-year quarter, driven by strength in the enterprise vertical. The company introduced various solutions for cloud, Internet service providers and enterprise networks to meet the rising demands of AI/ML-driven network architectures. These innovations enabled Arista to deliver a superior customer experience and increase customer engagement. The top line beat the consensus estimate of $1.76 billion.

Net quarterly sales from Products totaled $1.52 billion compared with $1.28 billion in the year-ago quarter. Service revenues increased to $287.1 million from $223.9 million. Arista witnessed positive demand trends owing to its strong product portfolio, which is highly scalable, programmable and provides data-driven automation, analytics and world-class support services.

Net sales from the Americas contributed 81.7% to total revenues, while international revenues accounted for the remainder. Driven by its relentless pursuit of innovative products, Arista maintains a strong leadership position in the Data Center and Cloud Networking vertical.

Other Details

Non-GAAP gross profit rose to $1.17 billion from $951.8 million for respective margins of 64.6% and 63.1%. The margin was above the company’s guidance and was buoyed by stronger enterprise margins and supply-chain discipline.

Total operating expenses were $376.5 million, up from $339.7 million in the year-ago quarter. Research & development costs rose to $235.8 million from $212.4 million. Sales and marketing expenses also increased to $106.8 million from $102 million due to a rise in headcount, new product introduction costs and higher variable compensation expenditures.

Cash Flow & Liquidity

In the first nine months of 2024, Arista generated $2.68 billion of net cash from operating activities compared with $1.51 billion in the year-ago period. As of Sept. 30, 2024, the company had $3.18 billion in cash and cash equivalents and $142.1 million in other long-term liabilities. During the quarter, the company repurchased $65.2 million worth of shares at an average price of $318.4 per share.

Outlook

For the fourth quarter of 2024, management expects revenues in the range of $1.85-$1.9 billion owing to healthy growth momentum. Non-GAAP gross margin is estimated in the range of 63-64%, and non-GAAP operating margin is approximated at 44%.

The company expects healthy demand trends in the remainder of 2024, backed by the strength of its existing portfolio and new product introductions. The company expects healthy traction from Etherlink AI platforms that are ultra-Ethernet consortium compatible, validating the migration from InfiniBand to Ethernet.

For 2025, management expects revenues to improve 15-17% year over year, with a gross margin of 60-62% and an operating margin of 43-44%.

Zacks Rank

Arista currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Releases

Light & Wonder, Inc. LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.16 per share.

Keysight Technologies, Inc. KEYS is due to release fourth-quarter fiscal 2024 earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, implying a decline of 21.1% from the year-ago reported figure.

Workday, Inc. WDAY is slated to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.

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CommScope Holding Company, Inc. COMM reported soft third-quarter 2024 results, wherein both the adjusted earnings and revenues fell short of the respective Zacks Consensus Estimate.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company reported a top-line expansion year over year, backed by improved sales in the Connectivity and Cable Solutions (CCS) segment. However, lower capital spending from customers, inventory adjustments, macroeconomic challenges and weak demand in several verticals weighed on the bottom line.

Net Income

On a GAAP basis, the net loss in the third quarter was $49.4 million or a loss of 23 cents per share compared with a net loss of $844.2 million or a loss of $ 3.98 per share in the year-ago quarter.

Non-GAAP net loss in the third quarter was $13.2 million or a loss of 5 cents per share compared with a net loss of $30.3 million or a loss of 12 cents per share in the prior-year quarter. The bottom line lagged the Zacks Consensus Estimate by 38 cents.

CommScope Holding Company, Inc. Price, Consensus and EPS Surprise

CommScope Holding Company, Inc. price-consensus-eps-surprise-chart | CommScope Holding Company, Inc. Quote

Revenues

Net sales in the reported quarter were $1.08 billion, up from $1.05 billion a year ago, driven by stronger sales in the CCS segment. However, the top line missed the consensus estimate of $1.43 billion.

Revenues in the CCS segment were up 16.8% to $736.7 million from $630.5 million in the year-ago quarter, backed by the solid demand in the hyperscale and cloud business.

Sales in the Networking, Intelligent Cellular and Security Solutions (NICS) segment excluding Distributed Antenna Systems (DAS) decreased 22.3% year over year to $157.5 million, primarily on a decline in Ruckus and Intelligent Cellular Networks.

Sales in the Access Network Solutions (ANS) segment were $188 million, down 14.7% year over year, due to a decline in Access Technologies and Broadband Network Solutions.

Region-wise, revenues in the United States increased 3.1% year over year to $714.6 million. Europe, the Middle East and Africa reported revenues of $159.3 million, up 4% from the year-earlier quarter’s tally of $153.1 million. Asia Pacific revenues were $126.6 million, up 0.4% year over year. Caribbean and Latin American revenues fell 5% year over year to $47.5 million, while revenues from Canada were up 10.3% year over year to $34.2 million.

In the September quarter, CommScope inked a definitive agreement with the American electronics company Amphenol Corporation for the divestiture of its OWN segment and the DAS business unit. The deal, subject to customary closing conditions and applicable regulatory approvals, is anticipated to close within the first half of 2025. Upon closing, Amphenol is likely to pay approximately $2.1 billion in cash to CommScope.

Other Details

Gross profit increased to $435.1 million from $380.2 million in the prior-year quarter. Total operating expenses declined to $337.3 million from $788.6 million in the year-ago quarter. CommScope recorded an operating income of $102.2 million against an operating loss of $408.4 million a year ago. Non-GAAP adjusted EBITDA was $204.2 million, up 30.2% year over year, driven by the strength in the CCS segment.

Cash Flow & Liquidity

In the third quarter of 2024, CommScope generated $122.2 million in cash from operating activities compared with $138.8 million in the prior-year period. As of Sept. 30, 2024, the company had $392.1 million in cash and cash equivalents and $8 billion in long-term debt.

Outlook

For 2024, management expects core adjusted EBITDA in the range of $645-$695 million. Core adjusted EBITDA (excluding the OWN segment and the DAS business unit) is forecasted to be between $700 and 750 million, with breakeven adjusted free cash flow. Weak demand trends due to near-term business uncertainties are likely to impact the company’s margins. However, CommScope’s cost optimization initiatives and investments in broadband and wireless infrastructure are likely to have a positive impact in the long run.

COMM’s Zacks Rank

CommScope currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Light and Wonder LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, indicating growth of 37% from the year-ago figure.

Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.

Workday, Inc. WDAY is scheduled to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.

Zacks Investment Research

Motorola Solutions, Inc. MSI reported strong third-quarter 2024 results with record revenues and operating earnings, driven by the diligent execution of operational plans and healthy growth dynamics backed by solid order trends.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate. In addition, Motorola ended the quarter with record operating cash flow, which further exemplified the strength of its portfolio. The company expects this growth momentum to continue in the near term on robust demand patterns and raised its guidance for 2024.

Net Earnings

On a GAAP basis, Motorola reported GAAP earnings of $562 million or $3.29 per share compared with $464 million or $2.70 per share in the year-earlier quarter. The year-over-year improvement was primarily attributable to top-line growth.

Excluding non-recurring items, non-GAAP earnings in the quarter were $639 million or $3.74 per share compared with $547 million or $3.19 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 36 cents.

Motorola Solutions, Inc. Price, Consensus and EPS Surprise

Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote

Revenues

Quarterly net sales were a record high at $2.79 billion, up 9% year over year. Solid sales in both segments across all regions were driven by the strength of the company's business model and the value of its mission-critical integrated ecosystem. The company witnessed strong demand for video security, command center software and LMR (land mobile radio) services. The top line beat the consensus estimate of $2.76 billion.

Region-wise, quarterly revenues were up 13% in North America to $2 billion due to growth in LMR, command center software and video security products. International revenues were up 1% to $783 million as growth in video security products and command center software was partially offset by lower revenues in the United Kingdom, owing to prospective price control on Airwave and the exit from the Emergency Services Network contract. Acquisitions contributed $36 million to revenues, while foreign exchange headwinds were $4 million.

Segmental Performance

Net sales from Products and Systems Integration increased to $1.78 billion from $1.61 billion in the year-ago quarter, driven by higher demand for LMR. The segment’s backlog was down $712 million to $4.2 billion, primarily due to solid LMR shipments.

Net sales from Software and Services were up 7% to $1 billion, with solid performance across command center software, LMR and video security services. The segment’s backlog increased $534 million to $9.9 billion, led by strong demand across all three technologies.

Other Quarterly Details

GAAP operating earnings increased to $711 million from $639 million in the prior-year quarter, while non-GAAP operating earnings were up to $830 million from $741 million. The company ended the quarter with a backlog of $14.1 billion, down $178 million year over year.

Overall GAAP operating margin was 25.5%, up from 25%, while non-GAAP operating margin was 29.7% compared with 29% in the year-ago quarter. Non-GAAP operating earnings for Products and Systems Integration were up 24% to $522 million for a margin of 29.3%, driven by higher sales, a favorable mix and lower direct material costs. Non-GAAP operating earnings for Software and Services were $308 million, down 4% year over year, for a non-GAAP operating margin of 30.6% due to the impact of the Airwave charge control.

Cash Flow and Liquidity

Motorola generated $759 million in cash from operating activities in the reported quarter compared with $714 million a year ago, bringing the respective tallies for the first nine months of 2024 and 2023 to $1.32 billion and $799 million. Free cash flow in the third quarter was $702 million. The company repurchased $31 million worth of stock during the quarter. As of Sept. 30, 2024, MSI had $1.4 billion of cash and cash equivalents with $5.67 billion of long-term debt.

Guidance

With solid quarterly results and robust demand patterns, the company raised its guidance for 2024. Non-GAAP earnings for 2024 are currently expected in the $13.63-$13.68 per share range, up from $13.22-$13.30 on revenue growth of 8.25% (up from 8% expected earlier), with a rise in both segments on higher demand.

Moving Forward

Motorola is poised to gain from disciplined capital deployment and a strong balance sheet position. The company expects strong demand across LMR products, the video security portfolio, services and software while benefiting from a solid foundation.

Motorola currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Light & Wonder, Inc. LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.16 per share.

Keysight Technologies, Inc. KEYS is due to release fourth-quarter fiscal 2024 earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, implying a decline of 21.1% from the year-ago reported figure.

Workday, Inc. WDAY is slated to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.

Zacks Investment Research

Akamai Technologies, Inc. AKAM reported relatively healthy third-quarter 2024 results, wherein adjusted earnings matched the Zacks Consensus Estimate while revenues beat the same.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company recorded higher revenues year over year, driven by healthy demand trends in multiple end markets. Strength in API security solutions was a positive factor. The introduction of advanced video workflow capabilities and the integration of Yospace into its Qualified Compute Partner Program have been driving more value for customers and boosting the top line.

Net Income

GAAP net income declined to $57.9 million or 38 cents per share from $160.5 million or $1.04 per share in the year-ago quarter. Despite top-line growth, the decline in GAAP earnings was primarily due to high operating expenses.

Non-GAAP net income was $243.5 million or $1.59 per share, down from $251.1 million or $1.63 per share a year ago. The bottom line was in sync with the Zacks Consensus Estimate.

Akamai Technologies, Inc. Price, Consensus and EPS Surprise

Akamai Technologies, Inc. price-consensus-eps-surprise-chart | Akamai Technologies, Inc. Quote

Revenues

Akamai generated $1,004.7 million in revenues compared with $965.5 million in the year-ago quarter. Solid momentum in the Security and Compute vertical drove the top line during the quarter. Revenues beat the Zacks Consensus Estimate of $1,000 million.

By product groups, revenues from Security Technology Group were $518.7 million compared with $455.8 million in the year-ago quarter. The 14% year-over-year growth was primarily driven by strength in segmentation products. Demand for Zero Trust Network Access Solution also remained strong.

The Delivery segment contributed $319.1 million, down from $379.3 million in the year-earlier quarter. Despite boasting a leadership position in the market, the segment is facing challenges due to macro headwinds and geopolitical instability around the world.

The Compute segment registered $166.9 million in revenues, up from $130.4 million in the prior year quarter. Healthy traction among enterprise customers and multiple deal wins in various verticals drove net sales in this segment.

Region-wise, net sales from the United States came in at $524.6 million, up 5% year over year. International revenues were $480.1 million, up from $466.9 million in the year-earlier quarter.

Other Details

In the September quarter, total operating expenses rose to $934 million from $789.4 million. Non-GAAP operating income remained almost flat at $295.8 million, with respective margins of 29% and 31%. Adjusted EBITDA was $426.3 million, up from $417.6 million in the year-ago quarter.

Cash Flow & Liquidity

In the third quarter of 2024, Akamai generated $392.5 million in cash from operating activities compared with $359.4 million in the prior-year quarter. As of Sept. 30, 2024, the company had $569.7 million in cash and cash equivalents with $854.7 million of operating lease liabilities. During the quarter, the company repurchased approximately 1.7 million shares for around $166 million.

Outlook

For the fourth quarter of 2024, Akamai estimates revenues in the range of $995-$1,020 million. Non-GAAP operating margin is projected between 27% and 28%. Non-GAAP earnings are forecast to be in the range of $1.49-$1.56 per share. Capital expenditure, as a percentage of revenue, is anticipated to be in the band of 18-19%.

For 2024, management expects revenues in the range of $3,966-$3,991 million. It expects a non-GAAP operating margin of 29%. Non-GAAP earnings are now expected in the range of $6.31-6.38 per share. Capital expenditure is likely to be around 17% of total revenues.

AKAM’s Zacks Rank

Akamai currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Light and Wonder LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, indicating growth of 37% from the year-ago figure.

Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.

Workday, Inc. WDAY is scheduled to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.

Zacks Investment Research

ADTRAN Holdings Inc. ADTN reported soft third-quarter 2024 results, wherein both the adjusted earnings and revenues fell short of the respective Zacks Consensus Estimate.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company recorded a top-line contraction year over year due to lackluster demand trends in the Network Solutions business. Macroeconomic challenges and inventory corrections continued to impact customer spending during the quarter. However, management focuses on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns.

Net Income

On a GAAP basis, the company incurred a net loss of $31.2 million or 36 cents per share compared with $78.2 million or $1.00 per share in the year-ago quarter. Despite lower sales, a decline in costs of revenues and operating expenses led to the bottom-line improvement.

Non-GAAP net loss was $6.7 million or 5 cents per share compared with $13.9 million or 18 cents per share in the year-ago quarter. The loss was wider than the Zacks Consensus Estimate of 2 cents.

ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise

ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote

Revenues

Net sales during the quarter declined to $227.7 million from $272.3 million in the prior-year quarter, owing to weak demand trends. Revenues came above the mid-point of the company’s guidance range. However, the top line missed the consensus estimate of $229 million.

Network Solutions contributed $181.5 million in revenues compared with $228.6 million in the prior-year quarter. The persistence of an unfavorable macroeconomic environment and inventory adjustments constrained the capex spending from customers. However, Services and Support revenues improved to $46.2 million from the year-earlier quarter’s tally of $43.8 million.

Other Details

Gross margin on a GAAP basis was 37.4%, up from 27.3% in the year-ago quarter. Operating loss was $24 million compared with the year-ago quarter’s tally of $89.3 million.

Cash Flow & Liquidity

In the first nine months of 2024, ADTRAN generated $98.5 million of cash from operating activities against a cash utilization of $29.3 million in the prior-year period. As of Sept. 30, 2024, the company had $88.5 million in cash and cash equivalents and $32 million of deferred compensation liability.

Outlook

For the fourth quarter of 2024, management anticipates net sales in the range of $230-$245 million, with non-GAAP operating margin trending between 0% and 4%.

ADTN’s Zacks Rank

ADTRAN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Light and Wonder LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, indicating growth of 37% from the year-ago figure.

AST SpaceMobile, Inc. ASTS is scheduled to release third-quarter earnings on Nov. 14. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, indicating growth of 21.74% from the year-ago reported figure.

The company delivered an average earnings surprise of 26.32% in the last reported quarter.

Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.

Zacks Investment Research