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Xilinx (XLNX) to Report Q3 Earnings: What's in Store?

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Zacks Equity Research
·3 min read
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Xilinx XLNX is expected to report third-quarter fiscal 2021 results on Jan 26.

For the fiscal third quarter, the company projects revenues at $750-$800 million.

The Zacks Consensus Estimate for revenues is pegged at $776.1 million, indicating growth of 7.3%, year over year. The consensus mark for earnings is pinned at 71 cents per share, suggesting a 4.4% increase from the prior-year quarter.

The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 5%.

Let’s see how things have shaped up prior to the upcoming announcement.

Factors at Play

Increased demand for cloud-based storage and services on the pandemic-induced social-distancing measures is anticipated to have benefited Xilinx’s data-center business during the fiscal third quarter.

Xilinx, Inc. Price and Consensus

Xilinx, Inc. Price and Consensus
Xilinx, Inc. Price and Consensus

Xilinx, Inc. price-consensus-chart | Xilinx, Inc. Quote

Moreover, data-center revenues are likely to have increased in the quarter under review, backed by the business expansion at multiple hyperscalers. A partnership with Alibaba (BABA) to power the company’s data center is also expected to have been a positive for Xilinx during the fiscal third quarter.

Additionally, growing demand for the company’s 60-nanometer UltraScale+ family is likely to have been a key growth driver. The company is also benefiting from solid demand for its Zynq platform, which is rising on the adoption of the MPSoC family in wireless services and across core vertical markets.

Nonetheless, Xilinx’s fiscal third-quarter performance is expected to have been affected by the Huawei ban and other trade-related uncertainties, along with the pandemic’s crippling impact on its business.

Furthermore, business disruptions caused by the coronavirus mayhem might have thwarted the company’s core markets, including the Wired and Wireless Group (WWG) and Automotive, Broadcast and Consumer (ABC) businesses.

What Our Model Says

Our proven model does not predict an earnings beat for Xilinx this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Xilinx currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Facebook, Inc. FB has an Earnings ESP of +1.67% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet, Inc. AVT has an Earnings ESP of +2.63% and carries a Zacks Rank #3, at present.

Advanced Micro Devices, Inc. AMD has an Earnings ESP of +2.26% and holds a Zacks Rank of 3 currently.

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