The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Xilinx beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins dropped.
Xilinx booked revenue of $511 million. The 24 analysts polled by S&P Capital IQ hoped for revenue of $497 million. Sales were 9.9% lower than the prior-year quarter's $567 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.41. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.47 for Q3 were 19% lower than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.8%, 10 basis points better than the prior-year quarter. Operating margin was 26.8%, 630 basis points worse than the prior-year quarter. Net margin was 24.9%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $504 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $2.2 billion. The average EPS estimate is $1.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 333 members out of 374 rating the stock outperform, and 41 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Xilinx a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xilinx is outperform, with an average price target of $33.18.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.