Xilinx Earnings: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Xilinx Inc. (NASDAQ:XLNX) reported its results for the second quarter. Xilinx designs, develops and markets programmable platforms and predefined system functions delivered as intellectual property cores.

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Xilinx Inc. Earnings Cheat Sheet

Results: Net income for Xilinx Inc. fell to $123.4 million (47 cents per share) vs. $126.3 million (47 cents per share) a year earlier. This is a decline of 2.3% from the year-earlier quarter.

Revenue: Fell 2% to $543.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Xilinx Inc. beat the mean analyst estimate of 44 cents per share. It fell short of the average revenue estimate of $575 million.

Quoting Management: “Sales from our industry-leading, All Programmable 28-nm products exceeded $20 million during the quarter with sales from all five family members. Our 28-nm product portfolio is the industry’s broadest; and design win activity for all five family members continues to be exceptionally strong across a broad base of end markets and applications. This is particularly impressive given the backdrop of a challenging macroeconomic environment,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “With All Programmable FPGAs, SoCs, and 3D ICs available today, leadership in performance, power and integration and unmatched productivity gains with Vivado Design Suite, Xilinx is unequivocally a generation ahead at 28-nm.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 cents in the first quarter, by 8 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Revenue has fallen for the last four quarters. Revenue declined 5.3% to $582.8 million in the first quarter. The figure fell 4.9% in the fourth quarter of the last fiscal year from the year earlier and dropped 9.9% in the third quarter of the last fiscal year from the year-ago quarter.

Net income has dropped 16.9% year-over-year on average across the last five quarters. Performance was hurt by a 26.1% decline in the second quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 52 cents a share to 46 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached $1.88 per share, a decline from $2.01.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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