S&P 500 (NYSE:SPY) component Xilinx (NASDAQ:XLNX) will unveil its latest earnings on Wednesday, October 17, 2012. Xilinx designs, develops and markets programmable platforms and predefined system functions delivered as intellectual property cores.
Xilinx Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 41 cents per share, a decline of 12.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 41 cents during the last month. Analysts are projecting profit to rise by 7.2% versus last year to $1.80.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 47 cents per share against a mean estimate of profit of 45 cents per share.
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A Look Back: In the first quarter, profit fell 15.9% to $129.8 million (47 cents a share) from $154.4 million (56 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.3% to $582.8 million from $615.5 million.
Stock Price Performance: Between September 13, 2012 and October 11, 2012, the stock price dropped $2.08 (-6%), from $34.87 to $32.79. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 5, 2011, when shares rose for seven straight days, increasing 10.9% (+$3.29) over that span. It saw one of its worst periods between April 26, 2012 and May 18, 2012 when shares fell for 17 straight days, dropping 14.6% (-$5.34) over that span.
Analyst Ratings: There are mostly holds on the stock with 13 of 21 analysts surveyed giving that rating.
On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 10.4% in the second quarter of the last fiscal year, 9.9% in third quarter of the last fiscal year and 4.9% in the fourth quarter of the last fiscal year and then fell again in the first quarter.
The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 18.7% over the past four quarters.
Wall St. Revenue Expectations: Analysts predict a decline of 1.3% in revenue from the year-earlier quarter to $547.9 million.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.39 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 7.15 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 6% to $2.3 billion while liabilities rose by 5.1% to $360.2 million.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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