NEW YORK (TheStreet) -- Xilinx (XLNX) was rising 2.36% to $48.66 on Wednesday following third-quarter earnings report on Tuesday.
Xilinx reported a 70% increase in quarterly profit with sales increases in the company's aerospace, defense and wired communication businesses. The chipmaker's net income climbed to $175.9 million, or 61 cents a share, in the third quarter, up from $103.6 million, or 38 cents a share, in the same period one year earlier. Revenue also rose 15% to $586.8 million.
The 18% revenue increase from the industrial, aerospace and defense sector, which accounted for 37% of third-quarter fiscal 2014 revenues, and 22% year-over-year growth in the broadcast, consumer and automotive sector, which accounted for 16% of third-quarter fiscal 2014 revenues, led to the overall year-over-year net income growth. Revenues from the communications and data center sector, which accounted for 44% of third-quarter fiscal 2014 revenues, increased 9% year over year.
TheStreet Ratings team rates XILINX INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate XILINX INC (XLNX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."