Markets

Xilinx (XLNX) to Report Q3 Earnings: What's in the Cards?

Xilinx Inc.XLNX is set to report third-quarter fiscal 2017 results on Jan 25. Last quarter, the company posted a positive earnings surprise of 12.96%. Notably, the stock has surpassed the Zacks Consensus Estimate thrice in the four trailing quarters with an average positive surprise of 6.93%.

Let's see how things are shaping up for this announcement.

Factors to Consider

The California-based chipmaker reported better-than-expected second-quarter fiscal 2017 results. Also, earnings and revenues improved year over year. Revenues by end markets (Communications & Data Center, Broadcast, Consumer & Automotive and Industrial, Aerospace & Defense) registered year-over-year growth as well.

Increasing demand for 28-nm, 20-nm and 16-nm nodes, driven by higher wireless deployments and strength in the wired communication segment, are expected to drive growth in the to-be reported quarter. The company's new product launches should further aid revenues.

Nonetheless, a slowdown in the Chinese economy, along with economic weakness in Europe and the Asia-Pacific could impact the company's near-term results. Also, competition from Lattice Semiconductor Corporation LSCC remains a material headwind.

Xilinx Inc. Price and EPS Surprise

Xilinx Inc. Price and EPS Surprise | Xilinx Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Xilinx is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Zacks ESP: The Earnings ESP for Xilinx is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 49 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter

Zacks Rank: Xilinx's Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult.

Note that we caution against stocks with Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Seagate Technology plc STX , with an Earnings ESP of +1.87% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Texas Instruments Incorporated TXN , with an Earnings ESP of +1.24% and a Zacks Rank #3.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Seagate Technology PLC (STX): Free Stock Analysis Report

Lattice Semiconductor Corp. (LSCC): Free Stock Analysis Report

Texas Instruments Inc. (TXN): Free Stock Analysis Report

Xilinx Inc. (XLNX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

LSCC TXN STX XLNX

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More