What happened

Shares of Xilinx (XLNX) slumped on Thursday after the chip company reported mixed results for its fiscal fourth quarter. Xilinx beat analyst estimates for revenue but missed on earnings, sending the stock down 16.3% by 12:30 p.m. EDT.

So what

Xilinx reported fourth-quarter revenue of $828 million, up 30% year over year and about $1.5 million above the average analyst estimate. Revenue in the communications segment grew by 74% year over year, accounting for 41% of Xilinx's total sales. The data center segment suffered a 7% sales decline, while the automotive, broadcast, and consumer segment grew by 20%. Industrial, aerospace, and defense sales were up just 1%.

A Xilinx chip.

Image source: Xilinx.

Non-GAAP earnings per share came in at $0.94, up 34% year over year but $0.02 short of analyst expectations. For the full year, Xilinx grew both non-GAAP operating income and non-GAAP earnings per share by more than 30%. "We are executing to our strategy and focusing on growth across our portfolio as we continue our transformation to a platform company," said Xilinx CEO Victor Peng.

With a heavy focus on the communications market, Xilinx is poised to benefit from the growth of 5G networks.

Now what

Xilinx expects to produce revenue between $835 million and $865 million in the first quarter of fiscal 2020. Based on the midpoint of the company's guidance, non-GAAP EPS of roughly $0.96 is expected.

While Xilinx's fourth-quarter results barely missed analyst expectations, a lofty valuation may have played a role in Thursday's rout. Prior to the earnings report, the stock traded for about 40 times fiscal 2019 earnings.