NEW YORK (TheStreet) -- TriQuint Semiconductor (TQNT) shares are down 2.5% to $19.69 in early-market trading on Thursday despite the company being upgraded to "buy" from "hold" by analysts at Canaccord Genuity.

The upgraded outlook follows the company's third quarter earnings release yesterday which saw TriQuint report beat analysts' quarterly earnings expectations of 24 cents per diluted share by 4 cents.

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Revenue of $272.1 million also topped analysts $261.4 million estimates for the period.

The company provided current quarter earnings guidance of between 40 cents and 45 cents per diluted share that is in line with analysts 42 cent expectations.

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

"We rate TRIQUINT SEMICONDUCTOR INC (TQNT) 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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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

  • TQNT's revenue growth has slightly outpaced the industry average of 17.7%. Since the same quarter one year prior, revenues rose by 21.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TQNT 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 3.06, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for TRIQUINT SEMICONDUCTOR INC is rather high; currently it is at 51.40%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TQNT's net profit margin of 2.25% significantly trails the industry average.
  • TRIQUINT SEMICONDUCTOR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIQUINT SEMICONDUCTOR INC reported poor results of -$0.23 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus -$0.23).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TRIQUINT SEMICONDUCTOR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: TQNT Ratings Report
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