Xilinx
XLNX
is scheduled to report fourth-quarter fiscal 2021 results on May 4.
Pursuant to its merger agreement with
Advanced Micro Devices
AMD
, Xilinx had not issued any outlook during the fiscal third-quarter results.
The Zacks Consensus Estimate for revenues is pegged at $812.5 million, indicating growth of 7.5%, year over year. The consensus mark for earnings is pinned at 75 cents per share, suggesting a 3.9% decline 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 5.9%.
Let’s see how things have shaped up prior to the upcoming announcement.
Xilinx, Inc. Price and Consensus
Factors at Play
Xilinx’s fiscal fourth-quarter performance is likely to have benefited 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. Moreover, growing demand for the company’s 60-nanometer UltraScale+ family is likely to have been a key growth driver.
Furthermore, increased demand for cloud-based storage and services on the pandemic-induced social-distancing measures is anticipated to have benefited Xilinx’s data-center business during the fiscal fourth quarter.
Additionally, 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 anticipated to have been a positive for Xilinx during the fiscal fourth quarter.
Also, its core markets, including the Wired and Wireless Group and Automotive, Broadcast and Consumer businesses, are witnessing strong recovery from the pandemic-trigerred business disruptions. This trend is likely to have boosted Xilinx’s revenues in to be reported quarter.
Nonetheless, Xilinx’s fiscal fourth-quarter performance might have been affected by the Huawei ban and other trade-related uncertainties, along with the pandemic’s crippling impact on its business.
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 3 and has an Earnings ESP of 0.00%.
Stock 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:
Ralph Lauren Corporation
RL
has an Earnings ESP of +6.25% and currently sports a Zacks Rank of 1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Walt Disney Company
DIS
has an Earnings ESP of +46.11% and carries a Zacks Rank #3, at present.
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