NEW YORK (TheStreet) -- Shares of Avago Technologies (AVGO) hit a 52-week high of $84.79 on Friday after the RF component company reported third-quarter earnings per share that beat analysts' expectations.
The company reported an increase in net income to $347 million from $223 million in the same period one year earlier. Adjusted earnings per share rose to $1.26 from 85 cents. Revenue increased year-over-year to $1.287 billion from $701 million.
Analysts had expected EPS of $1.06 on revenue of $1.35 billion.
For the fourth quarter, Avago anticipates revenue from continuing operations to increase 18% to 22% from the third quarter. This would equate to net revenue of $1.5 billion to $1.55 billion and adjusted revenue of $1.52 billion to $1.57 billion, which beats analysts' expectations of $1.41 billion.
The stock was up 8.68% to $82.99 at 11:44 a.m. More than 3.5 million shares changed hands, compared to the average volume of 1,761,660.
Separately, TheStreet Ratings team rates AVAGO TECHNOLOGIES LTD as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVAGO TECHNOLOGIES LTD (AVGO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."