wbhamquist....Xilinx(XLNX): Trimming Estimates For The September Quarter And Beyond
NASDAQ: XLNX
Rating: BUY (We anticipate the stock will outperform its peer group over the next 12 months.)
Sector: Communications Components
Price Target: $60
For the September quarter, we expect that North America business will be up slightly sequentially, while international business will be lower sequentially. For the overall business, we expect that revenues will be down slightly sequentially. We are now modeling a 5% sequential decline in revenues for the September quarter, versus our previous forecast of 3% sequential growth. We expect the December quarter to show the first significant sequential uptick for total revenues. As such, we are trimming our revenue and EPS estimates for CY:01 from $1.38 billion and $0.67, respectively, to $1.33 billion and $0.61, respectively. We are reducing our CY:02 revenue and EPS estimates from $1.67 billion and $1.04, respectively, to $1.57 billion and $0.94, respectively. We are encouraged to see the continued stabilization in North American business, and we believe, just as North America led the international market into the current slow down, that North America will again lead the international market to a recovery in the December quarter. As such, we maintain our Buy recommendation for the shares of Xilinx, as we believe that investors looking to participate in the anticipated industry recovery ought to build positions at current levels. |
