NEW YORK (TheStreet) -- Shares of Aceto (ACET)  were plunging 21.37% to $20.20 on heavy trading volume mid-afternoon Friday following its worse-than-expected 2016 fourth-quarter results. 

After yesterday's closing bell, Aceto posted earnings of 35 cents per share, falling short of analysts' projected 39 cents per share. 

Revenue came in at $135.4 million, below Wall Street's estimated $146.7 million. 

For the 2015 fourth quarter, Aceto reported earnings of 48 cents per share on revenues of $146.6 million. 

The company attributed its lower-than-expected fourth quarter results to "intensified competition" in its rising pharmaceuticals sector and unfavorable year-over-year comparisons. 

However, Aceto said it's launching 12 to 15 new products in 2017, and consequently expects sales and earnings growth in the mid-single digit percentage range. 

About 1.91 million of Aceto's shares have changed hands so far today vs. its average volume of 138,367 shares per day.

Aceto is a Lake Success, NY-based virtual manufacturing company, distributing chemical compounds used principally as raw materials or finished products.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings Team rates Aceto Corp. as a Buy with a ratings score of B. This is driven by some important positives, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. TheStreet Ratings Team feels its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here:

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