Xilinx Earnings: Here’s Why Investors are Buying Shares Now

Xilinx Inc. (NASDAQ:XLNX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.92%.

Xilinx Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 19.15% to $0.56 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 0.65% to $579 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Xilinx Inc. reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.47. It beat the average revenue estimate of $549.32 million.

Quoting Management: “The June quarter was exceptional on many fronts. Better than expected sales during the quarter were driven by broad-based end market strength, with particularly strong growth from wired communications and aerospace and defense applications. Gross margin was 69% in the quarter, up from 66% in prior quarter, and a new record for the Company. Operating margin of 33% was up from 28% in the prior quarter and a direct result of improved gross margin and continued spending discipline,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “Sales of our 28-nm products exceeded $50 million during the quarter, once again surpassing our expectations with strong growth from all five products. With the first 20-nm product in the semiconductor industry recently taped out by the Company, I am confident that Xilinx will continue to drive market expansion opportunities and augment our PLD leadership.”

Key Stats (on next page)…

Revenue increased 8.8% from $532.17 million in the previous quarter. EPS increased 19.15% from $0.47 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.48 and has not changed. For the current year, the average estimate has moved up from a profit of $1.98 to a profit of $2.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)