Xilinx Inc. is set to report second-quarter fiscal 2017 results on Oct 19. Last quarter, the company posted a positive earnings surprise of 10.9%. Notably, the stock has surpassed the Zacks Consensus Estimate thrice in the four trailing quarters with an average positive surprise of approximately 4.8%. Let's see how things are shaping up for this announcement.
Zacks Model Indicates Likely Earnings Beat
Our proven model shows that Xilinx is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Xilinx’s Most Accurate estimate stands at 55 cents while the Zacks Consensus Estimate is pegged at 54 cents, resulting in an Earnings ESP of +1.85%. Thus, the combination of the company’s Zacks Rank #2 and positive ESP makes us reasonably confident of an earnings beat this quarter.
Factors to Consider
The California-based chipmaker, Xilinx designs and manufactures a broad range of high-performance, high-density programmable devices. Increasing demand for 28-nm, 20-nm and 16-nm nodes, driven by higher wireless deployments and strength in the wired communication segment, is expected to continue driving growth in the to-be-reported quarter.
Furthermore, we expect the company’s revenues from 28-nm products to increase throughout fiscal 2017, aided by steady demand in communications, and continued strong adoption in the Automotive, ISM, Test and Aerospace and Defense markets. Moreover, design wins from other sectors such as wired communication, data center and industrial will add to revenues. While the scramble for share at advanced nodes continues, strength at the legacy nodes offers near-term support to the business, in our opinion.
Additionally, we are optimistic about the company’s recent decision to tap the fast-growing cloud computing, embedded, industrial IoT, and 5G markets which is likely to boost its revenues.
Other Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Seagate Technology Plc (STX - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #2.
Proofpoint Inc. has an Earnings EPS of 7.32% and a Zacks Rank #3.
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Xilinx Inc. is set to report second-quarter fiscal 2017 results on Oct 19. Last quarter, the company posted a positive earnings surprise of 10.9%. Notably, the stock has surpassed the Zacks Consensus Estimate thrice in the four trailing quarters with an average positive surprise of approximately 4.8%. Let's see how things are shaping up for this announcement.
Zacks Model Indicates Likely Earnings Beat
Our proven model shows that Xilinx is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Xilinx’s Most Accurate estimate stands at 55 cents while the Zacks Consensus Estimate is pegged at 54 cents, resulting in an Earnings ESP of +1.85%. Thus, the combination of the company’s Zacks Rank #2 and positive ESP makes us reasonably confident of an earnings beat this quarter.
Factors to Consider
The California-based chipmaker, Xilinx designs and manufactures a broad range of high-performance, high-density programmable devices. Increasing demand for 28-nm, 20-nm and 16-nm nodes, driven by higher wireless deployments and strength in the wired communication segment, is expected to continue driving growth in the to-be-reported quarter.
Furthermore, we expect the company’s revenues from 28-nm products to increase throughout fiscal 2017, aided by steady demand in communications, and continued strong adoption in the Automotive, ISM, Test and Aerospace and Defense markets. Moreover, design wins from other sectors such as wired communication, data center and industrial will add to revenues. While the scramble for share at advanced nodes continues, strength at the legacy nodes offers near-term support to the business, in our opinion.
Additionally, we are optimistic about the company’s recent decision to tap the fast-growing cloud computing, embedded, industrial IoT, and 5G markets which is likely to boost its revenues.
Other Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Seagate Technology Plc (STX - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #2.
Proofpoint Inc. has an Earnings EPS of 7.32% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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