Xilinx reported better-than-expected results, raising hopes for the semiconductor sector.
SAN JOSE, Calif. (TheStreet) - Xilinx(:XLNX) shares soared nearly 8% after the chip maker reported better than expected earnings after market close on Wednesday, further raising hopes for an improved semiconductor climate.
The company reported third-quarter earnings of 41 cents per share on $511.1 million in revenue. Wall Street analysts were looking for earnings of 37 cents per share on $500.4 million in revenue. Xilinx noted third quarter revenue was down 10% year-over-year, and 8% quarter-over-quarter.
Xilinx said it expects revenue in the upcoming quarter to be up 2% to 6% sequentially, and gross margins are expected to be between 64% and 65%.
In addition to the earnings release, the Xilinx board of directors also announced a quarterly dividend of 19 cents per share, to be payable on Feb. 29.
Xilinx is soaring in after-hours trading, up 7.1% to $37.80 on 615,000 shares according to Nasdaq.com.
Earnings from Xilinx come hot on the heels of strong results from another chip maker, Linear Technology(:LLTC). The component specialist provided better-than-expected earnings on Tuesday, indicating that the semiconductor space may be in an uptrend.
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--Written by Chris Ciaccia in New York
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