Earnings estimates for
) have gone up lately after the company reported
better-than-expected results for the fourth quarter of 2012.
Xilinx expects strong growth from 28-nanometer and 40-nanometer
product families in 2012. The growth in six of the secondary
end-market segments that the company serves convinces the
management of a broad-based recovery.
Xilinx posted a net income of $134.1 million or 49 cents per
diluted share in the fourth quarter of fiscal 2012, easily beating
the Zacks Consensus Estimate of 41 cents.
Consequently, nineteen out of the twenty-one analysts covering
the stock upped their estimates for fiscal 2013 while two moved in
the opposite direction.
The current Zacks Consensus Estimate for Xilinx is $2.01, up by
5 cents in the last thirty days. Xilinx has been consistently
beating our estimates. On an average, results have exceeded
expectations by 11.34% in the last four quarters.
Management stated that 28-nanometer product family rollout
continues at a rapid pace and management is confident that this
will be the most successful node in the company's history. We
believe the inventory correction in the supply chain is almost
complete and the company should return to growth by the second
quarter of calendar 2012.
This is in sharp contrast to key competitor,
), where estimates have declined in the last few days driven by
Xilinx is uniquely positioned to capitalize on incremental
growth opportunities offered by its leadership in 28nm products and
innovative platform-based architectures. The ramp-up in
40-nanometer and 45-nanometer products will open a host of new
markets, and replacement of ASICs will take place in a more
As of now, we await further clarity and maintain our Neutral
recommendation on Xilinx. Our recommendation is supported by Zacks
#3 Rank, which translates into a short-term rating of
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