3 Reasons Xilinx Is Built for Growth
Xilinx's (NASDAQ: XLNX) second-quarter results turned out to be a mixed bag, but this hasn't dented investors' confidence in the stock given the chipmaker's bright long-term prospects. The company missed Wall Street's top-line expectations by a whisker, reporting $620 million in revenue as compared to $579 million in the year-ago quarter.
However, Xilinx beat the bottom-line forecast by a couple of cents as its earnings jumped from $0.61 per share last year to $0.65 per share during the second quarter. Throw in strong quarterly guidance that calls for $630 million in revenue at the midpoint as compared to Wall Street's $626 million expectation and it isn't surprising to see why Xilinx stock has continued its upward trajectory after the quarterly report was released on Oct. 25.
But there's more to the company than just the quarterly numbers and short-term guidance. The company has been setting itself up for long-term growth by targeting the fast-growing FPGA (field-programmable gate array) chip market. A closer look at some of the key trends highlighted by Xilinx management on the latest earnings call tells us that it is moving in the right direction.
Source: Fool.com
