NEW YORK (TheStreet) -- Shares of Bottomline Technologies (EPAY) - Get Bottomline Technologies Inc. Report were advancing 9.89% to $22.87 on heavy trading volume mid-afternoon Friday as the Portsmouth, NH-based cloud-based digital banking company reported higher-than-expected 2016 fourth-quarter earnings and revenue and announced a $60 million share repurchase plan.
After yesterday's market close, Bottomline posted earnings of 37 cents per share, above Wall Street's projected 30 cents per share. Revenues rose 3% year-over-year to $88.1 million, surpassing consensus estimates of $86.88 million.
For the 2015 fourth quarter, Bottomline reported earnings of 35 cents per share and $85.4 million in revenue.
The company also said its board approved a $60 million share buyback program, which will commence on Aug. 30.
Despite Bottomline's better-than-expected results, Raymond James analysts noted the company continues to give them "reason to pause" due to shifting strategies for its digital banking business, according to Barron's.
Raymond James said it's unsure how the strategy will affect quarterly and yearly results and, as a result, will remain on the sidelines until that plays out.
About 2.25 million of Bottomline's shares have changed hands so far today vs. its average volume of 373,468 shares per day.
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 article's author. TheStreet Ratings has this to say about the recommendation:
The team rates Bottomline Technologies as a Sell with a ratings score of D+. This is driven by some concerns, which TheStreet Ratings Team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: EPAY