Bearish stock to watch: Xilinx, Inc. (NASDAQ: XLNX)

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Xilinx, Inc. (NASDAQ: XLNX) stock fell over 0.3% on 24th October, 2019 (as of 11:33 am GMT-4 ; Source: Google finance) after the company gave weak forecast for the third quarter & full year 2020 but issued a big stock buyback program. Xilinx has reported fiscal second-quarter net income of $227 million compared with $215.7 million in the year-ago period despite the impact of continuing trade restrictions with Huawei.

XLNX in the second quarter of FY 20 has reported the adjusted earnings per share of 94 cents, beating the analysts’ estimates for the adjusted earnings per share of 90 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 12 percent to $833.4 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $824.8 billion.

Moreover, ABC has posted revenues in line with the company’s expectations while AIT revenues were better than expected. WWG revenues were weaker than expected due to minimal sales of permissible products to Huawei. While the company has expedited the application process to the Department of Commerce in early second qurter, the company has not received any license approvals to expand the product set permissible to sell to Huawei. The company’s Revenue from the advanced products rose 29% year-over-year and formed approximately 74% of total sales. The demand for the Zynq platform also continues to be strong, due to the adoption of MPSoC in wireless applications as well as across our core vertical markets, particularly in our auto business. Wired and wireless group posted revenue growth of 24% year-over-year but fell 8% quarter-over-quarter.

Additionally, XLNX has declared a quarterly cash dividend of $0.37 per outstanding share of common stock payable on December 3, 2019, to all shareholders of record at the close of business on November 12, 2019.  The company has also approved a new authorization for the Company to repurchase up to $1.0 billion of its common stock.

Xilinx expects revenue to be in the range of $710 million to $740 million for the fiscal third quarter, and expects to range between $3.21 billion and $3.28 billion for the year. The analysts forecast the revenue to be of $844.9 million for the third quarter, and $3.4 billion for the year 2020. The company expects the third quarter as a low point with sequential revenue growth returning in the fourth quarter. The company also said its board approved a share-repurchase program of up to $1 billion.

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