Xilinx Inc. (NASDAQ: XLNX)
Xilinx Inc. Earnings
Xilinx Inc. (XLNX) got a nice boost in the after market session when they announced earnings that were in line with expectations at 49 cents earnings per share while revenue topped expectations in the amount of $566.2 million compared to analyst estimates of $554.5 million. On top of a strong earnings report, XLNX also announced a solid outlook with a prediction of 51 to 54 cents of earnings per share on $566 million in revenue while analysts are looking for revenues in the range of $565.86 million. All this together has got investors pretty excited as shares are screaming up. Currently analysts have an average price target of $48.91.
“New product sales were exceptionally strong during the quarter increasing 18% sequentially, enabling Xilinx to reach the high-end of our sales guidance. Both our 7-series and UltraScale families reached new sales records during the quarter, driven by a very broad base of end markets,” said Moshe Gavrielov, Xilinx President and Chief Executive Officer. “During the quarter we continued to execute on the delivery of our next-generation UltraScale+ family by launching public access development support for these families. This closely follows the first shipment of the Zynq UltraScale+ MPSoc last quarter, which was ahead of schedule. The capabilities of the UltraScale+ product family, coupled with its first-mover advantage, make it uniquely suited for applications ranging from next generation ADAS and Industrial Internet-of-Things to 5G wireless.” (MarketWatch)
Shares of XLNX jumped more than 13% after the company released third quarter results that beat estimates. Shares closed the previous day at $43.08 but gapped up the following day to $47.10 on heavy volume. Shares are now trading above the 200-day moving average, which is currently sitting at $44.79 and should act as support going forward. Other areas of support will be the $46 and $46.40 price levels while resistance will be met at the $48 and $48.50 price levels. With a gap up in price like this I would imagine there would be some profit taking and there could be some increased volatility as well.
Looking back on the daily chart you can see that shares have been on a bit of a bumpy ride, staying mostly in the high $30s and low $40s range. This new catalyst looks to give shares a nice boost and maybe even break it out of this range. The only thing holding this back is the overall market weakness so we’ll have to keep an eye out on how price action behaves over next few weeks.
Xilinx, Inc. designs, develops and markets programmable devices and associated technologies, including: integrated circuits in the form of programmable logic devices, including programmable System on Chips and three dimensional ICs, or 3D ICs, software design tools to program the PLDs, targeted reference designs, printed circuit boards and intellectual property, which consists of Xilinx and various third-party verification and IP cores. The company in addition to its programmable platforms, it also provides design services, customer training, field engineering and technical support. Xilinx was founded in February 1984 and is headquartered in San Jose, CA. (MarketWatch)