NEW YORK (TheStreet) -- Rambus (RMBS) - Get Report stock is up by 6.70% to $11.95 in mid-morning trading on Tuesday, after the company reported better-than-expected 2015 fourth quarter earnings results.
After the market close on Monday, the Sunnyvale, CA-based technology solutions company reported earnings of 18 cents per share, higher than analysts' estimates for earnings of 8 cents per share.
Revenue rose by 7% year-over-year to $76.8 million, while analysts were forecasting earnings of $74 million.
The company saw higher royalty revenue from IBM (IBM) and due to the renewal of Rambus's patent license agreement with ToshibaCorp. during the 2015 fourth quarter.
Additionally, Rambus announced on Monday that it acquired SmartCardSoftware, which develops mobile payment and ticketing platforms, for 64.7 million euros. The acquisition will be accretive to Rambus' earnings within the first year of the deal, the company said in a statement.
Separately, 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.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B. 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, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: RMBS