Why Xilinx Shares Fell 13.6% Last Month
Shares of Xilinx (NASDAQ: XLNX) fell 13.6% in January, according to data from S&P Global Market Intelligence. The leading designer of field-programmable gate arrays (FPGAs) reported mixed third-quarter results near the end of the month, combined with drastic cost-cutting measures and soft guidance for the upcoming reporting period.
Xilinx posted sales of $723 million in the third quarter, 10% below the year-ago period and lower than the analyst consensus of roughly $731 million. Adjusted earnings fell 26% to $0.68 per share, exceeding Wall Street's target of $0.59 per share. Looking ahead, management set fourth-quarter revenue guidance at approximately $765 million, far below analysts' expectation of $825 million.
The company also announced a cost-cutting program that will reduce Xilinx's employee count by 7% through a combination of attrition without replacement and direct layoffs.
Source Fool.com
