Xilinx is scheduled to report fourth-quarter fiscal 2019 results on Apr 24.
The company beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 5.7%.
The company is witnessing robust growth in its SoC products. Moreover, strength across applications and communications, automotive, particularly in ADAS, as well as industrial end markets were key drivers in the last reported quarter.
For the fiscal fourth quarter, Xilinx projects revenues in the range of $815-$835 million. The Zacks Consensus Estimate stands at $825.6 million, indicating growth of 22.7% from the year-ago reported figure.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Xilinx is benefiting from strength across Wireless Communications, Aerospace and Defense, Data Center plus Test Measurement and Emulation markets (TME), which is buoying its near-term prospects. This uptrend is likely to continue in the fiscal fourth quarter. The company expects to witness particular strength in TME in the quarter.
In the to-be-reported quarter, the company expects particular strength in the Wireless market. Acceleration in deployments in Korea and China is likely to reflect positively in its upcoming results.
We are optimistic about the surge in demand for Xilinx’s Ultrascale+ FPGAs among data-center operators for providing FPGA-as-a-Service (FaaS). Its FaaS deployments with Amazon’s (AMZN - Free Report) cloud arm AWS, Alibaba (BABA - Free Report) and Huawei are expected to boost results.
Xilinx’s ongoing transformation from an FPGA provider to a platform company is well on track with continued penetration of its 28-nanometer and 16-nanometer Zynq SoC products. Strength in ADAS demand, applications and communications markets is expected to benefit its fiscal fourth-quarter results.
Increase in operating expenses due to higher employee compensation and higher mask and wafer expenses is expected to keep margins under pressure.
Moreover, a decline in revenues from products in the Industrial, A&D, Automotive, Broadcast and Consumer end markets is expected due to low demand in those areas.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Xilinx has a Zacks Rank #2 and its Earnings ESP is +1.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is another stock which you may consider as our model shows that it has the right combination of elements to post an earnings beat in their upcoming release:
Acacia Communications, Inc. has an Earnings ESP of +5.73% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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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 >>
Xilinx is scheduled to report fourth-quarter fiscal 2019 results on Apr 24.
The company beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 5.7%.
The company is witnessing robust growth in its SoC products. Moreover, strength across applications and communications, automotive, particularly in ADAS, as well as industrial end markets were key drivers in the last reported quarter.
For the fiscal fourth quarter, Xilinx projects revenues in the range of $815-$835 million. The Zacks Consensus Estimate stands at $825.6 million, indicating growth of 22.7% from the year-ago reported figure.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Xilinx is benefiting from strength across Wireless Communications, Aerospace and Defense, Data Center plus Test Measurement and Emulation markets (TME), which is buoying its near-term prospects. This uptrend is likely to continue in the fiscal fourth quarter. The company expects to witness particular strength in TME in the quarter.
In the to-be-reported quarter, the company expects particular strength in the Wireless market. Acceleration in deployments in Korea and China is likely to reflect positively in its upcoming results.
We are optimistic about the surge in demand for Xilinx’s Ultrascale+ FPGAs among data-center operators for providing FPGA-as-a-Service (FaaS). Its FaaS deployments with Amazon’s (AMZN - Free Report) cloud arm AWS, Alibaba (BABA - Free Report) and Huawei are expected to boost results.
Xilinx’s ongoing transformation from an FPGA provider to a platform company is well on track with continued penetration of its 28-nanometer and 16-nanometer Zynq SoC products. Strength in ADAS demand, applications and communications markets is expected to benefit its fiscal fourth-quarter results.
Increase in operating expenses due to higher employee compensation and higher mask and wafer expenses is expected to keep margins under pressure.
Moreover, a decline in revenues from products in the Industrial, A&D, Automotive, Broadcast and Consumer end markets is expected due to low demand in those areas.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Xilinx has a Zacks Rank #2 and its Earnings ESP is +1.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is another stock which you may consider as our model shows that it has the right combination of elements to post an earnings beat in their upcoming release:
Acacia Communications, Inc. has an Earnings ESP of +5.73% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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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