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Is a Beat in the Cards for Xilinx (XLNX) in Q4 Earnings?

Xilinx Inc. XLNXis scheduled to release fourth-quarter fiscal 2018 results on Apr 25. Notably, the stock has delivered an average positive earnings surprise of 9% in the trailing four quarters. In the last reported quarter, the company came up with a positive earnings surprise of 20.6%.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 68 cents per share, indicating a 19.

3% increase on a year-over-year basis. Revenues are estimated to be around $649.54 million, indicating a 6.6% increase from the year-ago quarter.

Factors to Consider

The increasing demand for Xilinx’s high-performance, high-density programmable logic devices will prove to be beneficial for the company’s top line. We believe that Xilinx is well positioned to tap the opportunities arising from an increase in adoption of AI technologies, 5G connectivity, autonomous vehicles and IoTs.

Notably, Xilinx’s ongoing transition from a FPGA provider to an all-programmable devices producer has been helping the company gain market share. Its expanding product portfolio, which includes the Zynq RFSoC platform, is assisting it to counter intense competition from the likes of Intel INTC.

During the soon-to-be-reported quarter, Xilinx unveiled “automotive qualified Zynq UltraScale+ MPSoC family”, aimed at assisting the development of safe advanced driver-assistance systems (ADAS) and autonomous driving systems.

The company also partnered with Barefoot Networks in the fourth quarter for the development of solutions that will monitor the performance of an end-to-end network, targeting 5G networks.


Notably, the fourth-quarter results will be the first after a change in leadership, with Moshe Gavrielov announcing his retirement and Victor Peng taking over as the CEO of the company.

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