Please ensure Javascript is enabled for purposes of website accessibility

Why Xilinx, Inc. Shares Jumped Today

By Evan Niu, CFA - Jan 21, 2016 at 11:45AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The semiconductor specialist put up a top-line beat thanks to new products.

What: Shares of semiconductor specialist Xilinx (XLNX) soared today, up by 10% as of 11:30 am ET, after the company reported better-than-expected earnings for its fiscal third quarter.

So what: Revenue rose 7% sequentially to $566 million, although that was down 5% year over year. Net income added up to $131 million, or $0.49 per share. The bottom line was right on target with Street expectations, but the top line easily beat the $554 million consensus estimate. Gross margin was 68.5%.

Now what: CEO Moshe Gavrielov said that new products drove the strong results, particularly 7-series and UltraScale products. Those product families each hit new sales records during the quarter and were strong across a broad range of markets. Xilinx also announced a cash dividend of $0.31 per share. For the coming quarter, Xilinx expects revenue to be roughly flat sequentially, and gross margin should also be in the same ballpark of 68% to 69%.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Xilinx, Inc. Stock Quote
Xilinx, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.