Shares of Keysight Technologies (KEYS 0.90%) have jumped today, up by 12% as of noon EDT, after the company reported fiscal second-quarter earnings results. The seller of electronic measurement tools issued a better-than-expected outlook for the coming quarter and boosted full-year revenue guidance.
Revenue in the fiscal second quarter increased 32% to $999 million on a non-GAAP basis, which translated into non-GAAP net income of $158 million, or $0.83 per share. The Street was looking for just $965.4 million in sales and $0.83 per share in adjusted profit. Keysight finished the quarter with cash and cash equivalents of $784 million.
"Building on our outstanding start to the year, we delivered another excellent quarter with strong order growth and record revenue and we are raising our core revenue outlook for the year. Total revenue growth of 31 percent and 18 percent growth on a core basis was driven by broad-based core order strength as customers accelerate development in our key focus areas including 5G, automotive & energy and aerospace and defense," CEO Ron Nersesian said in a statement.
Keysight's outlook impressed investors, with fiscal third-quarter non-GAAP revenue expected in the range of $942 million to $972 million, well above the consensus estimate of $913 million. On the conference call with analysts, Keysight said it now expects core revenue growth for full-year 2018 to be 7% to 8%, above management's prior forecast of 5% to 7% core revenue growth.