Why NXP Semiconductor (NXPI) Is Gaining Today

NEW YORK (TheStreet) -- NXP Semiconductor (NXPI) gained 5.2% to $49.47 Thursday after beating analyst estimates with its fourth-quarter earnings report.

For the fourth quarter the chipmaker posted earnings of 99 cents a share, beating the Capital IQ Consensus Estimate of 95 cents a share by 4 cents. Revenue rose 15.9% to $1.29 billion in the quarter. Analysts estimated revenue of $1.27 billion.

For the first quarter NXP Semiconductor expects earnings of between 84 cents and 96 cents a share. Analysts estimate earnings of 89 cents a share for the quarter. The company's guidance sees revenue between $1.21 billion and $1.25 billion, compared to analyst expectations of $1.23 billion.

Must read: Today's Momo Momentum Stock Is NXP Semiconductor (NXPI)

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

"We rate NXP SEMICONDUCTORS NV (NXPI) 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, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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