Lattice Semiconductor (LSCC) Still a

NEW YORK (TheStreet) -- Lattice Semiconductor (LSCC) has been reiterated as a "buy" with a ratings score of B-, according to TheStreet Ratings team.

By late morning Thursday, shares had added 6.3% to $7.63. Trading volume of 1.8 million exceeded its three-month average daily volume of 1.5 million. 

Year to date, the stock has gained 39%. 

On Friday, the developer of programmable logic devices reported better-than-expected earnings. In the three months to December, per-share earnings of 6 cents beat Thomson Reuters estimates by 2 cents a share. 

Revenue of $89.5 million exceeded consensus of $81.1 million. 

 

TheStreet Ratings Team has this to say about their recommendation:

"We rate LATTICE SEMICONDUCTOR CORP (LSCC) a BUY. This is driven by a few notable strengths, 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

  • The revenue growth greatly exceeded the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 35.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LSCC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.54, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 29.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LSCC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LATTICE SEMICONDUCTOR CORP 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 year. We feel that this trend should continue. During the past fiscal year, LATTICE SEMICONDUCTOR CORP turned its bottom line around by earning $0.20 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus $0.20).
  • 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 191.2% when compared to the same quarter one year prior, rising from -$7.18 million to $6.55 million.

Also see: Why I Remain Bullish On EZchip Semiconductor

Also see: Why Lattice Semiconductor is Up Today

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