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Xilinx (XLNX) Stock Gains as Q3 Earnings & Sales Top Estimates

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Shares of Xilinx Inc. XLNX rallied 1.4% during Wednesday’s extended trading session after the company reported overwhelming third-quarter fiscal 2022 results, wherein the top and bottom lines surpassed the respective Zacks Consensus Estimate and marked significant year-over-year improvements as well.

The programmable logic device supplier delivered fiscal third-quarter adjusted earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.05. Moreover, the bottom line registered an increase of 65% year over year and 22% sequentially.

Revenues of $1.01 billion surpassed the Zacks Consensus Estimate of $953.8 million and climbed 26% year over year and 8% sequentially despite prevalent industry-wide supply-chain challenges. This double-digit year-over-year growth in the top line was mainly driven by strength in the Data Center Group (“DCG”), Automotive, Broadcast and Consumer (“ABC”), Wired and Wireless Group (“WWG”) and Aerospace & Defense, Industrial and Test, Measurement & Emulation (“AIT”) end markets.

The company noted that pursuant to its pending acquisition by Advanced Micro Devices AMD, it will not hold an earnings conference call or issue any outlook. The two companies entered into an agreement in October 2020, under which Advanced Micro Devices agreed to acquire Xilinx in an all-stock transaction worth $35 billion.

Xilinx, Inc. Price and EPS Surprise

Xilinx, Inc. price-eps-surprise | Xilinx, Inc. Quote

Quarter in Detail

Product-wise, advanced product’s revenues climbed 35% year over year, contributing 78% to the total revenues. Moreover, revenues from core products (22% of the total revenues) were up 3% from the year-ago quarter.

On the basis of end markets, ABC revenues (19% of the total revenues) surged 28% year over year while declining 4% quarter over quarter. This year-over-year uptick mainly resulted from the robust performance in the automotive end market.

WWG revenues (23% of the total revenues) increased 1% year over year but declined 18% sequentially.

AIT revenues (46% of the total revenues) jumped 28% on a year-over-year basis and 21% sequentially, chiefly driven by strength across all sub-markets with record performance in the industrial end market and an improvement in the aerospace & defense business.

DCG revenues (11% of the total) grew 81% from the year-ago period and 28% quarter over quarter.

Geographically, XLNX registered an increase of 43% in North America, 13% in the Asia Pacific, 18% in Europe and 53% in Japan on a year-over-year basis. Sequentially, North America and Europe regions registered growth of 40% and 16%, while revenues from Asia and Japan declined 10% and 1%, respectively.