Shares of the company were gaining 1.4% to $11.54 after hitting a 52-week high of $11.70.
About 9.6 million shares of RF Micro Devices traded hands by 11:45 a.m., compared to an average trading volume of 10.3 shares a day.
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TheStreet Ratings team rates RF MICRO DEVICES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RF MICRO DEVICES INC (RFMD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- RF MICRO DEVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RF MICRO DEVICES INC turned its bottom line around by earning $0.05 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.76 versus $0.05).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 2375.8% when compared to the same quarter one year prior, rising from $1.56 million to $38.65 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 44.98% is the gross profit margin for RF MICRO DEVICES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.21% trails the industry average.
- Powered by its strong earnings growth of 1200.00% and other important driving factors, this stock has surged by 88.70% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: RFMD Ratings Report
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.