Xilinx Inc. has performed on par with the industry last year. Both the stock and the industry have rallied 22% in the mentioned timeframe.
With expected long-term earnings per share growth rate of 9.3% and a market cap of $17.1 billion, it looks like a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s take a look at some of the factors aiding the company’s performance.
Xilinx’s broad range of high-performance, high-density programmable logic devices have been witnessing accelerated adoption as evident from its top line. The company recorded revenues of $631.2 million in the third quarter of fiscal 2018. The figure was above the mid-point of its guidance range of $615-$645 million (mid-point $630 million), as well as the Zacks Consensus Estimate of $630 million.
The highlight of the quarter was the record quarterly sales figure. It marked the ninth straight quarter of revenue growth. This stellar performance was primarily driven by robust adoption of the company’s 16nm, 20nm and 28nm products.
Notably, Xilinx’s ongoing transition from a FPGA provider to an all-programmable devices producer has been helping the company gain market share. Its expanding product portfolio, which includes the Zynq RFSoC platform, is assisting it to counter intense competition from the likes of Intel (INTC - Free Report) .
Amazon (AMZN - Free Report) was the first to use Xilinx chips and started offering FPGA-as-a-Service in May 2017. Since then, the company has won five contracts for FPGA-as-a-Service deployments, which, however, haven’t come online yet. The list includes prominent names like Alibaba (BABA - Free Report) among others.
However, Xilinx’s two biggest markets, India and China, continue to be challenged by slow wireless deployments. This makes us slightly cautious about its Communication business.
Xilinx currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.
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Xilinx Inc. has performed on par with the industry last year. Both the stock and the industry have rallied 22% in the mentioned timeframe.
With expected long-term earnings per share growth rate of 9.3% and a market cap of $17.1 billion, it looks like a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s take a look at some of the factors aiding the company’s performance.
Xilinx’s broad range of high-performance, high-density programmable logic devices have been witnessing accelerated adoption as evident from its top line. The company recorded revenues of $631.2 million in the third quarter of fiscal 2018. The figure was above the mid-point of its guidance range of $615-$645 million (mid-point $630 million), as well as the Zacks Consensus Estimate of $630 million.
The highlight of the quarter was the record quarterly sales figure. It marked the ninth straight quarter of revenue growth. This stellar performance was primarily driven by robust adoption of the company’s 16nm, 20nm and 28nm products.
Notably, Xilinx’s ongoing transition from a FPGA provider to an all-programmable devices producer has been helping the company gain market share. Its expanding product portfolio, which includes the Zynq RFSoC platform, is assisting it to counter intense competition from the likes of Intel (INTC - Free Report) .
Amazon (AMZN - Free Report) was the first to use Xilinx chips and started offering FPGA-as-a-Service in May 2017. Since then, the company has won five contracts for FPGA-as-a-Service deployments, which, however, haven’t come online yet. The list includes prominent names like Alibaba (BABA - Free Report) among others.
However, Xilinx’s two biggest markets, India and China, continue to be challenged by slow wireless deployments. This makes us slightly cautious about its Communication business.
Xilinx currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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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