What happened

Shares of Xilinx (NASDAQ:XLNX) jumped on Thursday after the fast-growing chip company reported strong third-quarter results. Both revenue and earnings came in ahead of analyst expectations, and Xilinx provided better-than-expected guidance. The stock was up about 17.5% at 12:45 p.m. EST.

So what

Xilinx reported third-quarter revenue of $800 million, up 34% year over year and about $29.6 million higher than the average analyst estimate. Data center and test, measurement, and emulation revenue grew 14% year over year, while communications revenue soared 41%.

A computer circuit board.

Image source: Getty Images.

Non-GAAP earnings per share came in at $0.92, up from $0.65 in the prior-year period and $0.07 better than analysts were expecting. Operating cash flow surged to $314 million, up 70% year over year.

Now what

On top of beating expectations for the third quarter, Xilinx's fourth-quarter guidance was ahead of analyst estimates. The company expects revenue between $815 million and $835 million in the fourth quarter, well ahead of the $776.2 million analysts were expecting. Based on Xilinx's margin guidance and using the current diluted share count, non-GAAP EPS is expected to be around $0.96.

"I am very excited to report yet another record revenue and earnings quarter...We continue to execute to our strategy and drive growth across our portfolio," said Xilinx CEO Victor Peng.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.