Xilinx reported better-than-expected 2Q results and provided an upbeat sales outlook for 3Q, helped by the chipmaker's data center and aerospace & defense businesses. Shares gained 2% in the extended trading session on Wednesday.Xilinx’s (XLNX) 2Q adjusted EPS of $0.82 beat Street estimates of $0.77. The company’s quarterly revenue of $767 million also came higher than the Wall Street forecast of $756.7 million and was above the mid-point of its guidance range of $730-$780 million. Still, the top and bottom lines fell 8% and 13%, respectively, on a year-over-year basis."We are pleased with our fiscal second quarter performance, which came in above the mid-point of guidance," said Xilinx CEO Victor Peng. "Our strong results were driven by another record quarter in our Data Center Group and Aerospace & Defense businesses, as well as improvement in our Automotive and Broadcast end markets.” (See XLNX stock analysis on TipRanks).Buoyed by stronger-than-expected 2Q results, Xilinx provided strong revenue guidance for 3Q. The company expects sales to be between $750 million and $800 million in 3Q, which at the mid-point is above the Street estimates of $772.3 million.Following Xilinx’s 2Q results, Mizuho Securities analyst Vijay Rakesh raised the stock’s price target to $112 (0.6% upside potential) from $110. However, Rakesh reiterated his Hold rating saying that “XLNX faces near-term 5G (fifth-generation wireless) FPGA (Field Programmable Gate Arrays) challenges.”Currently, the Street is cautiously optimistic on the stock. The Moderate Buy analyst consensus is based on 5 Buys and 7 Holds. With shares up nearly 14% year-to-date, the average price target of $118.41 implies further upside potential of about 6.4% to current levels.Related News: Telia Inks 5G Network Deals With Ericsson, Nokia KeyCorp’s Profit Rises As Credit Loss Provisions Drop 20% Prologis’ 2020 Outlook Tops Estimates; Street Says Buy More recent articles from Smarter Analyst: * AstraZeneca Covid-19 Brazil Trial To Continue After Volunteer Dies - Report * Lam Research's 1Q Sales Soar 47% On Strong Chip Demand * Evercore Hikes Dividend After Profit Beat; Shares Rise 6% * Brightcove Pops 12% After Record Sales Quarter; Street Says Buy
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Thursday, October 22, 2020
Xilinx Gains On 2Q Earnings Beat, Sales Outlook
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