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NEW YORK (TheStreet) -- Shares of Sigma Designs (SIGM) were gaining 6.3% to $9.50 after-hours on Tuesday after the semiconductor company beat analysts' estimates for earnings and revenue in the fiscal first quarter.

Sigma Designs reported earnings of 9 cents a share for the fiscal first quarter, above analysts' estimates of 1 cent a share for the quarter. Revenue grew 49.4% year over year to $55.1 million for the quarter, beating analysts' estimates of $53.48 million for the quarter.

"We had a solid first quarter with revenue increasing for the fourth straight quarter. In addition, we increased our non-GAAP profitability for the third quarter in a row," President and CEO of Sigma Designs Thinh Tran said in a statement. "Our higher revenue resulted primarily from a combination of increased customer volumes for both our Smart TV chipsets and IoT Devices. We are committed to sustaining this positive momentum."

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

TheStreet Recommends

"We rate SIGMA DESIGNS INC (SIGM) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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

SIGM data by YCharts

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