NEW YORK (TheStreet) -- Shares of Blackhawk Network (HAWK) were climbing 8.24% to $34.56 on heavy trading volume late Wednesday morning after the company posted earnings that topped analysts' estimates for the 2016 third quarter.

Late yesterday, the gift card and payment solutions company reported adjusted earnings of 14 cents per diluted share, beating Wall Street's expectations of 10 cents per share.

Adjusted operating revenue for the quarter was $168.9 million, which fell short of analysts' projections for revenue of $189.3 million.

For the full year, Blackhawk expects adjusted earnings per diluted share in the range of $1.45 and $1.64 on adjusted operating revenue of $897 million to $926 million.

Wall Street is modeling earnings of $1.57 per share on revenue of $936 million for 2016.

Jefferies said the impact of Blackhawk's EMV chip card business on revenue and EBITDA was in line with the company's projections despite delays in several chains.

"We note the company likely faces some challenges getting open-loop card sales ramped back up to pre-EMV levels, but we nevertheless expect a meaningful portion of revenues lost to EMV to return in 2017," the firm wrote in an analyst note.

Additionally, Jefferies said the company's new $100 million share buyback authorization will be viewed "favorably" by investors.

The firm maintained a "buy" rating and $43 price target on shares of the Pleasanton, CA-based company.

More than 1.6 million shares of Blackhawk traded so far today vs. its 30-day average volume of about 737,000 shares. 

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 rated this stock as a "hold" with a ratings score of C+.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

You can view the full analysis from the report here: HAWK

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