 |
Oct 28, 2025 |
Xilinx Inc. (NA: XLNX)NA |
|
|||||||||||||
Data Overview
| Value Score | NA |
|---|---|
| P/E (F1) | NA |
| P/E (F1) Rel to Industry | NA |
| PEG Ratio | NA |
| P/S (F1) | NA |
| P/S (TTM) | NA |
| P/CFO | NA |
| P/CFO Rel to Industry | NA |
| EV/EBITDA Annual | NA |
| Growth Score | NA |
|---|---|
| Proj. EPS Growth (F1/F0) | NA |
| Hist. EPS Growth (Q0/Q-1) | NA |
| Qtr CFO Growth | NA |
| 2 Yr CFO Growth | NA |
| Return on Equity (ROE) | NA |
| (NI - CFO) / Total Assets | NA |
| Asset Turnover | NA |
| Momentum Score | NA |
|---|---|
| 1 week Volume change | NA |
| 1 week Price Cng Rel to Industry | NA |
| (F1) EPS Est 1 week change | NA |
| (F1) EPS Est 4 week change | NA |
| (F1) EPS Est 12 week change | NA |
| (Q1) EPS Est 1 week change | NA |
Summary
Xilinx reported overwhelming Q1 results, wherein its earnings and revenues, both, marked a solid year-over-year improvement. Moreover, the company beat its own guidance at every point. Going ahead, we believe that rising demand for 28-nm, 20-nm and 16-nm nodes is positive for the company expansion in the forthcoming quarters. We believe that Xilinx is well positioned to tap the opportunities arising from an increase in adoption of AI technologies, 5G connectivity, autonomous vehicles and IoTs, which will drive growth over the long-run. The company’s product launches should further aid revenues. Nonetheless, slowdown in the Asia-Pacific region could adversely affect Xilinx’s near-term results. Stiff competition from peers is another material headwind. Moreover, favorable product mix (higher Industrial, lower wireless) will help in gross margins.
Elements of the Zacks Rank
Agreement Estimate Revisions (60 days)
|
0% Q1 (Current Qtr)Revisions: NA Up: NA Down: NA |
0% Q2 (Next Qtr)Revisions: NA Up: NA Down: NA |
0% F1 (Current Year)Revisions: NA Up: NA Down: NA |
0% F2 (Next Year)Revisions: NA Up: NA Down: NA |
Magnitude Consensus Estimate Trend (60 days)
|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
Upside Zacks Consensus Estimate vs. Most Accurate Estimate
|
|
|
|
|
Surprise Reported Earnings History
|
|
|
|
Average 4 Qtr Surprise |
||||||||||||||||||||||||
The data on the front page and all the charts in the report represent market data as of , while the report's text is as of 07/27/2018
Overview
San Jose, CA based Xilinx Inc. designs and manufactures a broad range of high-performance, high-density programmable logic devices (PLDs), such as field-programmable gate arrays (FPGAs) and complex-programmable logic devices (CPLDs). A PLD is an integrated circuit that can be programmed in a laboratory to perform complex functions.
The company classifies its products into two categories:
Advanced Products (54% of fiscal 2018 revenues) include UltraScale+, Ultrascale and 7-series products.
Core Products (46%) include Virtex-6, Spartan-6, Virtex-5, CoolRunner-II, Virtex-4, Virtex-II, Virtex-E, Spartan-3, Spartan-II, Spartan, CoolRunner XC9500 products, configuration solutions, Software & Support/Services.
The company provides solutions for electronic equipment makers in wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive and data processing markets.
Reasons To Buy:
Steady demand in the communications industry, and continued strong adoption of its products in Automotive, ISM, Test and Aerospace and Defense markets will continue to drive Xilinx revenues.
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. The company’s Zynq portfolio, which is implemented in both the 28-nm and 16-nm node, delivered sturdy top-line growth in all the three quarters of fiscal 2018. The company has started shipping of the 16-nm RFSoC Silicon In-house family of product, which offers a superior architectural solution to 5G wireless with integrated RF-class analog technology. The product facilitates reduction of power consumption (50-75%), as well as footprint reduction for future 5G deployments, cable and wireless backhaul applications.
We are optimistic over the demand of Xilinx’s Ultrascale+ FPGAs by data-center operators for providing FPGA-as-a-Service. Amazon was the first to use Xilinx chips and started offering FPGA-as-a-Service in May 2017. The list also includes Alibaba which is in the process to deploy two generations of FPGA-as-a-Service by using Xilinx’s Ultrascale+ FPGA chips.
The ever-evolving technology sector has been witnessing a number of new trends over the past couple of years. Of these, the notable ones include artificial intelligence (AI), 5G connectivity, autonomous vehicles and Internet of Things (IoT). This has created a whole new opportunity for hardware and software companies, in turn, increasing demand for programmable chips. We consider that the demand for FPGAs will surge over the long run, backed by its unique feature of the ability to be reprogrammed to the desired application or functionality requirements after manufacturing. Notably, Xilinx is a market leader in the FPGA market, with 58% share and has over one-year technology lead over its closest rival – Intel. Therefore, we believe that Xilinx is well placed to grab the opportunity arising from an increase in adoption of AI technologies, 5G connectivity, autonomous vehicles and IoTs.
Xilinx has significant exposure to Telecom & Wireless vertical markets. These markets are strongly co-related with global GDP growth and spending behavior. Most of the emerging economies are seeing unprecedented demand for mobile devices like smartphones and tablets and are also getting increasingly connected via the Internet. This has compelled these countries to heavily invest in Telecom & Wireless infrastructure. Moreover, China’s ramp up of LTE deployments should translate into revenue growth for the company (LTE base stations generally use more FPGAs). The company has secured a major design win (28-nm) from Huawei Technologies Co. Ltd., a Chinese telecom and networking equipment vendor. India, another emerging market, is also stepping up 4G deployments. The company is also benefiting from LTE deployments in the U.S., Japan, South Korea and Europe, and 3G deployments in several developing countries. Furthermore, per a study report by research firm IHS iSuppli, most of the top OEMs are set to increase spending on wireless technology.
The FPGA industry has a high barrier to entry. Bottlenecks such as a unique skill set that combines semiconductor and software expertise; high investment, especially at leading technology nodes; lack of third-party development tools; and intellectual property make this space less attractive. Hence, the FPGA market is operating as a duopoly with two key players, Xilinx and Altera, dominating approximately 80% of the market.
We are encouraged by Xilinx’s endeavor to return shareholder value through continued share buybacks and dividends. Notably, during fiscal 2017, the company paid $333 million as cash dividends and repurchased shares worth $522 million during the fiscal. Continuing with its policy of returning cash to shareholders, the company paid $353.1 million as cash dividends and repurchased shares worth $474.3 million during fiscal 2018. These investor-friendly initiatives not only boost earnings but also instill investors’ confidence and loyalty.
Risks
- Xilinx’s one of the biggest markets, Asia Pacific is still facing the challenge of slow wireless deployments, which makes us slightly cautious about its Communication business. This is making it difficult to predict the company’s growth.
- Xilinx could face challenges from its biggest competitor, Intel. After acquiring Altera in 2015, Intel and has been developing high-end high-performance next-generation 14 nm FPGA chips by using its 14 nm trigate transistor technology. To remain competitive, Xilinx is planning a transition to the 16 nm node using Taiwan Semiconductor Company’s FinFET technology. However, as Intel’s manufacturing process is technologically more advanced, we do not expect Xilinx to outperform Intel in the lower dimension nodes. Apart from this, both the companies are likely to compete in 20 nm products that are still under production.
- By acquiring Altera, Intel now has a strategic advantage over Xilinx regarding its HardCopy offering (a new type of high performance ASIC for which Xilinx does not have a competing product). HardCopy offers the performance of an ASIC and the flexibility of a PLD. HardCopy devices, therefore, have the potential to drive future revenues due to their low costs and ability to address opportunities beyond the PLD market. As far as development costs are concerned, ASICs are more economical and offer improved chip performance than PLDs when used in high-volume production. Therefore, they are ideal for large-volume, low-cost appliances such as consumer electronics. Customers often opt for PLDs initially for their time-to-market benefits and then shift to ASICs to produce greater volumes at lower costs. With no exposure into ASICs, it will be difficult for Xilinx to outperform Intel.
- Xilinx keeps on innovating for producing advanced FPGAs of lower geometries to improve performance, density and system-level functionality, integration, and lower cost and power consumption at each manufacturing process node. With each transition to a new process node, there are considerable tape-out costs, the need to navigate the learning curve and limited volume production, which are all significant headwinds for margins and profitability. Xilinx is on the verge of a 20-nm and 16-nm transition, so there will be related pressure on gross margin.
Last Earnings Report
Quarter Ending
| Report Date | NA |
|---|---|
| Sales Surprise | NA |
| EPS Surprise | NA |
| Quarterly EPS | NA |
| Annual EPS (TTM) | NA |
Xilinx reported better-than-expected fiscal first-quarter 2019 results wherein both the top and the bottom line surpassed the Zacks Consensus Estimate and recorded year-over-year improvement.
The company reported earnings of 74 cents per share, which beat the Zacks Consensus Estimate by a penny and were much higher than the prior-year quarter’s figure of 59 cents.
Revenues increased 14% year over year to $684.4 million and outpaced the Zacks Consensus Estimate of $672.2 million as well.
Quarter Details
Product wise, Advanced product revenues jumped 21% year over year, contributing 56% to total revenues. Revenues from core products (44% of total) increased 5% from the year-ago quarter.
Management noted that the company’s first and second generation Zynq products hit a new sales record in the quarter, growing 76% from the year-ago quarter, driven by robust demand in automotive, industrial, communications, and Data Center markets. The Zynq SoC Platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, now contributes 17% of total revenues.
Sales of 20-nm node soared 30% year over year in the reported quarter. Xilinx noted that the sales of 16-nm node increased more than 2.5 times.
On the basis of end markets, Communications revenues (31% of total revenues) declined 7% year over year. Industrial, Aerospace & Defense segment revenues (33% of total revenues) climbed 30% on a year-over-year basis. Broadcast, Consumer & Automotive revenues (16% of total revenues) increased 13% year over year.
The new reporting segment, Data Center and Test, Measurement & Emulation (TME) (19% of total) grew 11% from the year-ago quarter. Key design wins from hyperscalers globally for accelerating applications beyond FPGA as a Service (FaaS) drove results.
However, due to decline in cryptocurrency and expected decline in TME, Data Center and TME segment fell 20% sequentially. Communication segment revenues were up 7% from the prior quarter driven by strong growth in both wired and wireless, which offset the impact of ZTE.
Geographically, the company registered year-over-year growth in every region. Revenues from North America, Europe, Japan and Asia Pacific were up 12%, 14%, 12% and 15%, respectively.
Operational Details
Gross margin expanded 150 basis points (bps) year over year to 69.8%.
Research & development and selling, general & administrative expenses, as a percentage of revenues, declined 40 bps and 160 bps, respectively.
Operating expenses as a percentage of revenues declined 200 bps to 38.3%.
The company posted operating income of $215.8 million, up 27.6% year over year. Operating margin expanded 350 bps to 31.5%.
Balance Sheet, Cash Flow & Shareholders’ Return
Xilinx exited the reported quarter with cash, cash equivalents and short-term investments of approximately $3.36 billion compared with $3.45 billion recorded in the previous quarter.
The company has total long-term debt (excluding current portion) of about $1.207 billion, down from $1.214 billion reported in the previous quarter.
Xilinx generated cash of $176.2 million from operations compared with $242.3 million in the previous quarter.
The company paid $91 million in dividends and repurchased approximately 2.1 million shares for $137 million. The company has approximately $570 million remaining in repurchase authorizations.
Guidance
For second-quarter fiscal 2019, Xilinx projects revenues in the range of $700-$720 million.
Management expects Data Center and TME to grow significantly. Communications is expected to increase, with strong wireless revenue growth to more than offset a slight decline in wired revenues. Early 5G deployment activity in Korea and the withdrawal of the denial order on ZTE will be tailwinds.
On the other hand, Automotive, Broadcast and Consumer is expected to be approximately flat. Industrial, Aerospace & Defense is expected to decline.
Gross margin is expected to be around 69.5%. Operating expenses are projected to be $279 million. Tax rate is estimated between 10% and 14%.
For fiscal 2019, Xilinx projects revenues in the range of $2.8-$2.9 billion (mid-point $710 million).
The company expects strong growth from Data Center, TME, Industrial, and Communications. Wireless is expected to grow significantly with early 5G production deployments and the anticipated recovery of business with ZTE. The company is also witnessing an increase in wired infrastructure deployment in concurrence with the 5G ramp.
Gross margin is expected to be between 68.5 and 70.5%. Operating expenses are projected to be in the range of $1.12-$1.14 billion.
Recent News
On Jun 26, 2018, Xilinx announced that it is teaming up with Daimler AG to develop AI based automatotive applications.
Industry Analysis(1)Zacks Industry Rank: NA
Industry Comparison NA | NA |
Industry Peers |
| XLNX NA | |
|---|---|
| Market Cap | NA |
| # of Analysts | NA |
| Dividend Yield | NA |
| Value Score | NA |
| Cash/Price | NA |
| EV/EBITDA | NA |
| PEG Ratio | NA |
| Price/Book (P/B) | NA |
| Price/Cash Flow (P/CF) | NA |
| P/E (F1) | NA |
| Price/Sales (P/S) | NA |
| Earnings Yield | NA |
| Debt/Equity | NA |
| Cash Flow ($/share) | NA |
| Growth Score | NA |
| Hist. EPS Growth (3-5 yrs) | NA |
| Proj. EPS Growth (F1/F0) | NA |
| Curr. Cash Flow Growth | NA |
| Hist. Cash Flow Growth (3-5 yrs) | NA |
| Current Ratio | NA |
| Debt/Capital | NA |
| Net Margin | NA |
| Return on Equity | NA |
| Sales/Assets | NA |
| Proj. Sales Growth (F1/F0) | NA |
| Momentum Score | NA |
| Daily Price Chg | NA |
| 1 Week Price Chg | NA |
| 4 Week Price Chg | NA |
| 12 Week Price Chg | NA |
| 52 Week Price Chg | NA |
| 20 Day Average Volume | NA |
| (F1) EPS Est Wkly Chg | NA |
| (F1) EPS Est Mthly Chg | NA |
| (F1) EPS Est Qtrly Chg | NA |
| (Q1) EPS Est Mthly Chg | NA |
| Industry | S&P 500 |
|---|---|
| 0.00 M | 39.47 B |
| 22 | |
| % | 1.48% |
| - | - |
| NA | 0.04 |
| NA | 14.59 |
| NA | 2.35 |
| NA | 3.40 |
| NA | 14.65 |
| NA | 20.42 |
| NA | 3.08 |
| NA% | 4.89% |
| NA | 0.57 |
| NA | 8.99 |
| - | - |
| NA% | 8.80% |
| NA% | 7.77% |
| NA% | 7.00% |
| NA% | 7.27% |
| NA | 1.21 |
| NA% | 38.13% |
| NA% | 12.86% |
| NA% | 17.02% |
| NA | 0.53 |
| % | 5.18% |
| - | - |
| NA% | 1.23% |
| NA% | 2.08% |
| NA% | 3.21% |
| NA% | 8.61% |
| NA% | 18.06% |
| 0 | 2,634,967 |
| NA% | 0.00% |
| NA% | 0.02% |
| NA% | 0.59% |
| NA% | 0.00% |
Zacks Stock Rating System
We offer two rating systems that take into account investors' holding horizons; Zacks Rank and Zacks Recommendation. Each provides valuable insights into the future profitability of the stock and can be used separately or in combination with each other depending on your investment style.
Zacks Recommendation
This rating system that has an excellent track record of predicting performance over the next 6 to 12 months. The foundation for the quantitatively determined Zacks Recommendation is trends in the company's estimate revisions and earnings outlook.
The Zacks Recommendation is broken down into 3 Levels; Outperform, Neutral and Underperform. Unlike most Wall Street firms, we have an excellent balance between the number of Outperform and Neutral recommendations.
Our team of 70 analysts are fully versed in the benefits of earnings estimate revisions and how that is harnessed through the Zacks quantitative rating system. But we have given our analysts the ability to override the Zacks Recommendation for the 1200 stocks that they follow. The reason for the analyst over-rides is that there are often factors such as valuation, industry conditions and management effectiveness that a trained investment professional can spot better than a quantitative model.
Zacks Rank
The Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon. The underlying driver for the quantitatively-determined Zacks Rank is the same as the Zacks Recommendation, and reflects trends in earnings estimate revisions.
Zacks Style Score Education
The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus on the best Zacks Rank stocks that best fit their own stock picking preferences.
Academic research has proven that stocks with the best Growth, Value, and Momentum characteristics outperform the market. The Zacks Style Scores rate stocks on each of these individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B is better than a C; and so on.
As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Style Score of an A or a B.
Disclosures
This report contains independent commentary to be used for informational purposes only. The analysts contributing to this report do not hold any shares of this stock. The analysts contributing to this report do not serve on the board of the company that issued this stock. The EPS and revenue forecasts are the Zacks Consensus estimates, unless otherwise indicated in the report’s first-page footnote. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. ZIR certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report.
Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Any opinions expressed herein are subject to change.
ZIR is not an investment advisor and the report should not be construed as advice designed to meet the particular investment needs of any investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor, or other appropriate tax or financial professional to determine the suitability of any investment. This report and others like it are published regularly and not in response to episodic market activity or events affecting the securities industry.
This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities herein mentioned. ZIR or its officers, employees or customers may have a position long or short in the securities mentioned and buy or sell the securities from time to time. ZIR is not a broker-dealer. ZIR may enter into arms-length agreements with broker-dealers to provide this research to their clients. Zacks and its staff are not involved in investment banking activities for the stock issuer covered in this report.
ZIR uses the following rating system for the securities it covers. Outperform- ZIR expects that the subject company will outperform the broader U.S. equities markets over the next six to twelve months. Neutral- ZIR expects that the company will perform in line with the broader U.S. equities markets over the next six to twelve months. Underperform- ZIR expects the company will underperform the broader U.S. equities markets over the next six to twelve months.
No part of this report can be reprinted, republished or transmitted electronically without the prior written authorization of ZIR.