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

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Xilinx is expected to report third-quarter fiscal 2022 results on Jan 26.

Pursuant to its merger agreement with Advanced Micro Devices (AMD - Free Report) , Xilinx had not issued any outlook during its second-quarter results.

The Zacks Consensus Estimate for revenues is pegged at $953.8 million, indicating growth of 18.7% year over year. The consensus mark for earnings stands at $1.05 per share, suggesting a 34.6% increase from the prior-year quarter.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 13.5%.

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

Xilinx, Inc. Price and EPS Surprise Xilinx, Inc. Price and EPS Surprise

Xilinx, Inc. price-eps-surprise | Xilinx, Inc. Quote

Factors at Play

Xilinx’s third-quarter results are likely to have benefited from solid demand for its Zynq platform, which is rising on the adoption of the multiprocessor system on a chip family in wireless services and across core vertical markets. Moreover, the growing demand for the company’s 60-nanometer UltraScale+ family is likely to have been a key growth driver.

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

Additionally, data-center revenues are likely to have increased in the quarter under review backed by the business expansion at multiple hyperscalers. Its partnerships with companies, including Alibaba, Amazon Web Services, Microsoft Azure, Tencent Cloud and Baidu Cloud, are also expected to have been an upside for Xilinx’s data-center business during the fiscal third quarter.

Also, its core markets, including the Wired and Wireless Group, and Automotive, Broadcast and Consumer businesses, are witnessing a strong recovery from pandemic-led business disruptions. This trend is likely to have boosted Xilinx’s revenues in the to-be-reported quarter.

However, XLNX’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.

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. However, that’s not the case here.

Xilinx currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Advanced Micro Devices, Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.

Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +2.89% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%.

The Zacks Consensus Estimate for Apple’s quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6% year over year to $118.1 billion.

Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +7.33%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.

The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.7% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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