Earnings Preview: Xilinx

Xilinx (XLNX) is expected to report Q1 earnings after market close Wednesday, July 16,  with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 35c for EPS and $481.89M for revenue, according to First Call.

Analyst Views

Cowen expects Xilinx to report Q1 results roughly at the mid-point of the company's guidance range provided on April 23, of down 1% to up 3% sequentially. Based on Cowen's recent channel checks, the firm believes that demand trends are relatively normal, inventory levels are healthy, and backlog coverage continues to improve. While the communications end-market is expected to be up for the June quarter, Cowen still remains concerned as its industry channel checks continue to show mixed data for this end-market. Thus, heading into Q2, Cowen expects management's guidance to be roughly in-line with their and Street consensus expectations. Consensus for Q2 is 36c on $482.97M in revenue.

Key issues for the call: Overall company guidance and details on expectations for growth in the communications segment; possible margin expansion in the June quarter; and an update on Xilinx's share repurchase plan.