NEW YORK (TheStreet) -- Shares of Cavium (CAVM) are increasing by 1.63% to $54.92 on heavy trading volume late Thursday afternoon, after the company reported its 2015 fourth quarter earnings results after yesterday's market close.

The San Jose, CA-based company reported earnings of 28 cents per diluted share, which were in line with analysts' expectations.

Revenue for the quarter was $100.9 million, lower than analysts' estimates of $102.44 million.

Oppenheimer reiterated its "outperform" rating and $72 price target on the stock this morning. 

"Multiple greenfield products have begun to ramp, though a hub transition at top five customer (AMZN) is curbing first quarter growth. As a result, management is guiding the first quarter up 1% to $102 million, just shy of consensus $103 million," the firm said in an analyst note.

Additionally, wireless capital expenditure, which has been a drag for the company and its peers last year, has picked up, the firm noted.

About 1.77 million of the company's shares were traded by this afternoon, well above the company's average volume of 728,450 shares per day.

Cavium is a provider of semiconductor processors, which enable processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications.

Separately, TheStreet Ratings Team has a "hold" rating with a score of C on the stock.

TST Recommends

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations.

As a counter to these strengths, the team also finds weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: CAVM

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