(Reuters) – Electronic equipment maker Keysight Technologies forecast third-quarter profit below estimates on Monday, anticipating slow demand in electronics industrial markets amid high borrowing costs.
Shares of Keysight, which provides electronic design, testing and software products such as oscilloscopes and network emulators, were down 2.9% in aftermarket trading.
California-based Keysight said it expects third-quarter profit to be between $1.30 and $1.36 per share, below analysts’ estimate of $1.45 per share, according to LSEG data.
It reported a 10% decline in second-quarter revenue in its communications solutions segment, which accounted for 67% of its total revenue in 2023.
Revenue in its electronic industrial solutions segment fell 17% in the second quarter, reflecting continued constraints in semiconductor and manufacturing-related customer spending.
“We saw pockets of growth and stability across multiple end markets even as customer spending remained constrained. Our full-year outlook is unchanged and assumes modest order growth in the second half,” CEO Satish Dhanasekaran said.
On an adjusted basis, Keysight earned $1.41 per share, compared with the LSEG estimate of $1.39 apiece.
(Reporting by Kannaki Deka in Bengaluru; Editing by Alan Barona)
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