This spinoff is still paying off 10 years later

Article Excerpt

In November 2014, Agilent spun off its electronic testing equipment business as Keysight Technologies. Agilent shareholders received one Keysight share for every two shares they held. Since the split, Agilent is up over 235% while Keysight has jumped 330%. We feel both are poised for more gains in the next few years. AGILENT TECHNOLOGIES INC. $134 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 292.1 million; Market cap: $39.1 billion; Price-to-sales ratio: 5.8; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients. In Agilent’s fiscal 2024 second quarter, ended April 30, 2024, revenue fell 8.4%, to $1.57 billion from $1.72 billion a year earlier. The lower revenue is mainly because drug developers and manufacturers are spending less on new equipment as they cope with higher interest rates. Earnings before unusual items fell 5.6%, to $356 million from $377 million. Due to fewer shares outstanding, per-share earnings declined 3.9%, to $1.22…