NEW YORK (TheStreet) -- Shares of InvenSense (INVN) were gaining 16.4% to $12.40 on Thursday after the chipmaker beat analysts' estimates for earnings in the second quarter of fiscal 2016.

InvenSense reported earnings of 16 cents a share for the fiscal second quarter, beating analysts' estimates of 15 cents a share for the quarter. Revenue grew 23.7% year over year to $111.55 million for the quarter, compared to analysts' estimates of $110.84 million.

"Q2 was a solid quarter in which revenue came in within our expectations, and we outperformed our bottom line guidance, said Behrooz Abdi, president and CEO. We continue to expand our software-enabled sensor platform and are delivering high-value IoT use cases that provide strategic differentiation and tangible end-user experience enhancements."

Looking to the third quarter of fiscal 2016, InvenSense said it expects to report earnings of 17 cents to 19 cents a share and revenue of $115 million to $120 million. Analysts expect the company to report earnings of 18 cents a share and revenue of $116.8 million for the quarter.

About 2.9 million shares of InvenSense were traded by 11:04 a.m. Thursday, above the company's average trading volume of about 1.8 million shares a day.

TST Recommends

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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

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

INVN data by YCharts

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