) hit a new 52-week high of $50.37 on Feb 18, eventually closing
at $50.32. The closing share price represents a one-year return
of 28.6% and a year-to-date return of 9.5%. Average volume of
shares traded over the last 10 days (5,548K) increased from the
average volume of shares traded over the last three months
Xilinx delivered positive earnings surprises in the last three
quarters with an average beat of 5.4%. This Zacks Rank #3 (Hold)
company has a market cap of $13.39 billion and a long-term
expected earnings growth rate of 12.5%.
The price appreciation can be attributed to the growing demand
for Xilinx's 28 nanometer (nm) field programmable gate array
(FPGAs) driven by higher wireless deployments and strength in the
wired communication segment. This has also enabled the company to
). During the third quarter of 2014, sales of these products came
in at $100.0 million.
We believe that the company's continued focus on margin
expansion, cost reduction across its product portfolio and higher
yield are positives. We also think that Xilinx's product launches
will boost revenues.
Xilinx reported mixed third-quarter results with the bottom line
surpassing the Zacks Consensus Estimate but the top line missing.
Both revenues and earnings increased on a year-over-year basis.
Both the Industrial, Aerospace & Defense and Broadcast,
Consumer & Automotive segments contributed to the
year-over-year increase in the top line.
Xilinx provided a positive view for the fourth quarter on a
sequential basis and expects favorable contributions from all end
markets and the 28-nm portfolio. Xilinx also expects sales from
mainstream products to be up on a sequential basis and its
communications segment to continue to show strength due to the
China LTE scenario. Considering all the above factors, Xilinx
expects revenues to increase 2.0% to 6.0% on a sequential basis
to $598.5 million-$622.0 million.
Additionally, we are encouraged by Xilinx's endeavor to return
shareholder value through continued share buybacks and dividend
payouts. During the quarter, Xilinx repurchased shares worth
$97.1 million and paid dividends of approximately $67.1 million
to its shareholders. These investor-friendly initiatives not only
boost earnings but also instill investor confidence and loyalty.
Considering the growth potential and positive news flow, the
Zacks Consensus Estimate for 2014 was up significantly over the
past 30 days. Thirteen estimates for 2014 were raised over the
last 30 days, while three estimates for the fourth quarter of
2013 were lowered during the same period of time.
Stocks That Warrant a Look
Better-ranked stocks in the technology industry that are
currently performing well and also have good visibility include
Lexmark International Inc.
) with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy).
ALTERA CORP (ALTR): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
LEXMARK INTL (LXK): Free Stock Analysis
XILINX INC (XLNX): Free Stock Analysis Report
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