NEW YORK (TheStreet) -- Shares of GrubHub (GRUB) - Get Grubhub, Inc. Report were sliding 11.15% to $38.55 on heavy trading volume late Wednesday morning as the company posted better-than-anticipated 2016 third quarter earnings and provided a positive fourth-quarter revenue forecast.
Despite the beat, investors are concerned that the company's growth is slowing from its prior rapid pace, the Wall Street Journal reports.
Before today's opening bell, the New York City-based food order and delivery company posted adjusted earnings of 23 cents per share, higher than Wall Street's expectations of 19 cents per share.
Revenue climbed 44% year-over-year to $123.5 million and topped analysts' estimates of $118.6 million.
Active users grew 19% over last year to 7.69 million in the period.
CFO Adam DeWitt said the company had "strong" results in the quarter, "generating record net revenues and significant operating leverage," according to a company statement.
For the fourth quarter, GrubHub projects revenue between $136 million and $138 million. Wall Street is looking for $136.2 million.
More than 3.21 million GrubHub shares have traded hands so far today vs. its 30-day average of 1.73 million.
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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: GRUB