What happened

Shares of Xilinx (NASDAQ: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.