Why EZchip (EZCH) Stock Is Up Today

NEW YORK (TheStreet) -- EZchip (EZCH) was gaining 9% to $26.05 Wednesday after beating analysts' estimates for earnings and revenue in a record first quarter.

For the first quarter EZchip reported earnings of 33 cents a share, beating the Capital IQ Consensus Estimate of 32 cents a share by 1 cent. Revenue grew 32.7% from the year-ago quarter to $20.3 million. Analysts expected revenue of $20 million for the quarter.

"This has been a record quarter for EZchip in revenues, up 33% compared to the first quarter last year," EZchip CEO Eli Fruchter said in a press release. "During the quarter we continued the testing of the NP-5 and expect the NP-5 to move to production in the second half of the year, in line with the typical three year gap we have seen between NP generations, starting with the NP-1 in 2002. Our upcoming NPS will double the throughput of its NP-5 predecessor and is expected to arrive sooner than the typical three year gap we have had with previous chip generations."

Must read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates EZCHIP SEMICONDUCTOR LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate EZCHIP SEMICONDUCTOR LTD (EZCH) 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

If you liked this article you might like

The Week Ahead: Beware of Bouncing Cats

Fasten Your Seatbelts: More Craziness in the Week Ahead

Which Semiconductor Company Could Buy Semtech Today?

Activist Drops EZchip Semi Battle, Supports Mellanox Merger

Activist Ups Pressure on EZchip Semiconductor to Scuttle Mellanox Deal