Coronavirus Threatens Xilinx’s Outlook, but Fundamentals Remain Strong
Xilinx's (NASDAQ: XLNX) fiscal fourth-quarter results turned out to be a mixed bag. The chipmaker beat Wall Street's revenue expectations by a small margin and met earnings estimates, but its guidance played spoilsport.
Xilinx forecast $660 million to $720 million in revenue for the first quarter of fiscal 2021, the mid-point of which is going to fall well short of the consensus estimate of $738.8 million. The company had reported nearly $850 million in revenue during the prior-year period, which means that its top line could crash over 18% annually in the June quarter.
The uncertainty caused by the coronavirus pandemic has also forced Xilinx to refrain from providing full-year guidance. That's because the company expects some of its core markets to witness "evident" disruptions on account of COVID-19. However, a closer look at Xilinx's business indicates that it may be able to weather the near-term headwinds and get back on track once things return to normal. Let's see why.
Source Fool.com
