Xilinx, Inc. (XLNX) recently upgraded its guidance for the third quarter of fiscal 2010. Xilinx now expects sales in the third quarter to increase 16%-20% sequentially, up from the previous guidance of around 6%-10%. The new guidance implies revenues between $481 million and $498 million in the December quarter.
Management increased sales guidance, primarily due to the broad-based strength across all end-market categories and geographies. The company now projects gross margin around 64%, up from the earlier estimate of 62%-63%.
The company is expected to report third quarter results on January 20, 2010. We upgrade our rating on the stock from NEUTRAL to OUTPERFORM in view of the expected strong performance in the coming quarters.Zacks Investment Research
