NEW YORK (TheStreet) -- Shares of InvenSense (INVN) were falling 7.2% to $11.94 on heavy trading volume Wednesday after the chipmaker guided below analysts' estimates for the fiscal second quarter.

InvenSense said it expects to report earnings of 13 cents to 15 cents a share on revenue of $106 million to $114 million for the fiscal second quarter. Analysts expect the company to report earnings of 17 cents on revenue of $115.5 million for the quarter.

For the fiscal first quarter InvenSense reported earnings of 14 cents a share, above analysts' estimates of 12 cents a share for the quarter. Revenue grew 59.4% year over year to $106.29 million for the quarter, above analysts' estimates of $102.44 million.

The company reported a gross margin of 44.6% for the fiscal first quarter, down from 49.6% in the year-ago quarter, and below its guidance of 45% to 46%. InvenSense expects a gross margin of 44% to 45% for the fiscal second quarter.

About 4.5 million shares of InvenSense were traded by 12:17 p.m., above the company's average trading volume of about 1.9 million shares a day.

TheStreet Ratings team rates INVENSENSE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate INVENSENSE INC (INVN) a HOLD. The primary factors that have impacted our 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."

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

INVN data by YCharts

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