Please ensure Javascript is enabled for purposes of website accessibility

Why Xilinx Shares Got Clobbered Today

By Evan Niu, CFA - Apr 28, 2016 at 12:30PM

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

June quarter guidance left a little to be desired.

Image source: Xilinx.

What: Shares of programmable technology specialist Xilinx (XLNX) got clobbered today, down by 8% as of 12:07 p.m. ET, after the company reported fiscal fourth-quarter results.

So what: Revenue in the fiscal fourth quarter came in at $571 million, essentially flat sequentially and year over year. Net income was $145 million, or $0.54 per share. Both top- and bottom-line results bested consensus estimates, which called for $566 million in revenue and $0.52 per share in adjusted profit. The company declared an increased quarterly dividend of $0.33 per share.

Now what: CEO Moshe Gavrielov said this fiscal year has seen volatility in the company's wireless communication segment, but new products are driving momentum in both 20-nanometer and 28-nanometer products. Guidance was the real kicker: Sales in the current quarter are expected to be flat sequentially, with gross margin of 69% to 70%. Operating expenses should be about $220 million. The Street was expecting sales to increase sequentially to $579 million.

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.
XLNX

*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 service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

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.