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What's in Store for Xilinx (XLNX) This Earnings Season?

Xilinx XLNX is set to report second-quarter fiscal 2021 results on Oct 21.

For second-quarter fiscal 2021, the company projects revenues at $730-$780 million.

The Zacks Consensus Estimate for revenues is pegged at $755.3 million, indicating a decline of 9.4%, year over year. The consensus mark for earnings is 76 cents per share, suggesting a 19.2% fall from the prior-year quarter.

The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 3.6%.

Let’s see how things have shaped up for the upcoming announcement.

Factors at play

Xilinx’s fiscal second-quarter performance is expected to have been affected by the Huawei ban and other trade-related uncertainties along with the pandemic’s crippling impact on its business. Furthermore, business disruptions caused by the coronavirus mayhem might have thwarted the company’s core markets, including Automotive, Broadcast, Consumer, Industrial, and semiconductor test.

Xilinx, Inc. Price and Consensus

Xilinx, Inc. Price and Consensus

Xilinx, Inc. price-consensus-chart | Xilinx, Inc. Quote

Nonetheless, increased demand for cloud-based storage and services on the pandemic-led social-distancing measures is anticipated to have benefited Xilinx’s data-center business.

Moreover, data-center revenues are likely to have increased in the quarter under review, backed by the business expansion at multiple hyperscalers. A partnership with Alibaba (BABA) to power the company’s data center is also expected to have been a positive for Xilinx during the quarter under review.

Additionally, growing demand for the company’s 60-nanometer UltraScale+ family is likely to have been a key growth driver. The company is also benefiting from solid demand for its Zynq platform, which is rising on the adoption of the MPSoC family in wireless services and across core vertical markets.

What Our Model Says

Our proven model does not predict an earnings beat for Xilinx this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Xilinx currently carries a Zacks Rank of 4 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Vishay Intertechnology, Inc. VSH has an Earnings ESP of +6.45% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corning Incorporated GLW has an Earnings ESP of +0.59% and currently sports a Zacks Rank of 1.

Alphabet GOOGL has an Earnings ESP of +17.26% and carries a Zacks Rank of 2, currently.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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