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NEW YORK (TheStreet) -- Shares of Avago Technologies Inc. (AVGO) are higher by 13.72% to $128.14 on heavy volume in mid-morning trading on Thursday, after the company reported its fiscal 2015 first quarter earnings results which topped what analysts were expecting for the period.

For the most recent quarter the designer, developer, and global supplier of analog semiconductor devices said its non-GAAP earnings from continuing operations were $2.09 per diluted share compared to $1.99 per diluted share for the 2014 fiscal first quarter.

Analysts had forecast for adjusted earnings of $1.94 per share for the latest quarter.

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Total revenue was $1.64 billion versus $709 million for the year ago first quarter. Adjusted revenue was $1.66 billion, exceeding the $1.64 billion analysts predicted.

Additionally, Avago Technologies announced its plan to acquire Emulex Corp. (ELX) in a transaction valued at $606 million, or $609 million net of cash and debt acquired.

"Emulex's connectivity business fits very well with Avago's existing portfolio serving the enterprise storage end market," Avago CEO Hock Tan said in a statement.

The deal is expected to close during the second half of Avago's fiscal year. Following the closing Avago said it is expecting the transaction to be immediately accretive to the company's non-GAAP earnings per share.

Separately, TheStreet Ratings team rates AVAGO TECHNOLOGIES LTD as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate AVAGO TECHNOLOGIES LTD (AVGO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: AVGO Ratings Report

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