U.S. Markets close in 43 mins
  • S&P 500

    3,668.71
    +6.26 (+0.17%)
     
  • Dow 30

    29,888.87
    +64.95 (+0.22%)
     
  • Nasdaq

    12,349.90
    -5.20 (-0.04%)
     
  • Russell 2000

    1,838.46
    +2.41 (+0.13%)
     
  • Crude Oil

    45.29
    +0.74 (+1.66%)
     
  • Gold

    1,833.20
    +14.30 (+0.79%)
     
  • Silver

    24.18
    +0.09 (+0.39%)
     
  • EUR/USD

    1.2102
    +0.0023 (+0.1936%)
     
  • 10-Yr Bond

    0.9480
    +0.0140 (+1.50%)
     
  • Vix

    20.79
    +0.02 (+0.10%)
     
  • GBP/USD

    1.3360
    -0.0063 (-0.4663%)
     
  • USD/JPY

    104.5200
    +0.2040 (+0.1956%)
     
  • BTC-USD

    19,068.77
    +74.86 (+0.39%)
     
  • CMC Crypto 200

    374.20
    +9.28 (+2.54%)
     
  • FTSE 100

    6,463.39
    +78.66 (+1.23%)
     
  • Nikkei 225

    26,800.98
    +13.44 (+0.05%)
     

Xilinx Gains On 2Q Earnings Beat, Sales Outlook

support@smarteranalyst.com (Ben Mahaney)
·2 min read

Xilinx reported better-than-expected 2Q results and provided an upbeat sales outlook for 3Q, helped by the chipmaker's data center and aerospace & defense businesses. Shares gained 2% in the extended trading session on Wednesday.

Xilinx’s (XLNX) 2Q adjusted EPS of $0.82 beat Street estimates of $0.77. The company’s quarterly revenue of $767 million also came higher than the Wall Street forecast of $756.7 million and was above the mid-point of its guidance range of $730-$780 million. Still, the top and bottom lines fell 8% and 13%, respectively, on a year-over-year basis.

"We are pleased with our fiscal second quarter performance, which came in above the mid-point of guidance," said Xilinx CEO Victor Peng. "Our strong results were driven by another record quarter in our Data Center Group and Aerospace & Defense businesses, as well as improvement in our Automotive and Broadcast end markets.” (See XLNX stock analysis on TipRanks).

Buoyed by stronger-than-expected 2Q results, Xilinx provided strong revenue guidance for 3Q. The company expects sales to be between $750 million and $800 million in 3Q, which at the mid-point is above the Street estimates of $772.3 million.

Following Xilinx’s 2Q results, Mizuho Securities analyst Vijay Rakesh raised the stock’s price target to $112 (0.6% upside potential) from $110. However, Rakesh reiterated his Hold rating saying that “XLNX faces near-term 5G (fifth-generation wireless) FPGA (Field Programmable Gate Arrays) challenges.”

Currently, the Street is cautiously optimistic on the stock. The Moderate Buy analyst consensus is based on 5 Buys and 7 Holds. With shares up nearly 14% year-to-date, the average price target of $118.41 implies further upside potential of about 6.4% to current levels.

Related News:
Telia Inks 5G Network Deals With Ericsson, Nokia
KeyCorp’s Profit Rises As Credit Loss Provisions Drop 20%
Prologis’ 2020 Outlook Tops Estimates; Street Says Buy

More recent articles from Smarter Analyst: