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Xilinx (XLNX) to Post Q1 Earnings: What's in the Offing?

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Xilinx is set to report first-quarter fiscal 2021 results on Jul 30.

For first-quarter fiscal 2021, the company projects revenues at $660-$720 million.

The Zacks Consensus Estimate for revenues is pegged at $727.2 million, indicating a decline of 14.4%, year over year. The consensus mark for earnings stands at 63 cents per share, suggesting a 35.1% plunge from the prior-year quarter’s reported number.

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 first-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 pandemic might have thwarted the company’s core markets, including Automotive, Broadcast, Consumer, Industrial, and semiconductor test.

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 gone up in the quarter under review, backed by the business expansion at multiple hyperscalers. A partnership with Alibaba (BABA) to power its data center is also expected to have been a positive for Xilinx.

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 3 and has an Earnings ESP of -0.19%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Facebook has an Earnings ESP of +9.36% and currently carries a Zacks Rank of 3.

Alphabet (GOOGL - Free Report) has an Earnings ESP of +0.32% and carries a Zacks Rank of 3, currently.

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