NEW YORK (TheStreet) -- Shares of Photronics (PLAB) - Get Report were dropping 8.12% to $9.28 on heavy trading volume mid-afternoon Thursday after the company posted weaker-than-expected earnings for the 2016 fiscal third quarter and gave soft guidance.

Before today's market open, the Brookfield, CT-based electronics imaging company reported earnings of 12 cents per diluted share, below analysts' estimates of 14 cents per share.

Revenue fell 6% to $123.2 million year-over-year. Wall Street was looking for $123.5 million.

"As expected, flat panel display (FPD) achieved solid results during the third quarter, and our manufacturing capacity remained sold out," CEO Peter Kirlin said in a statement.

"On the integrated circuits (IC) side, high-end was down due to memory demand headwinds, slightly offset by a strengthening logic market in Asia," he added.

For the fourth quarter, Photronics forecasts earnings per share between 9 cents and 17 cents on revenue of $118 million to $128 million. Analysts are expecting earnings of 16 cents per share on revenue of $128.8 million.

DA Davidson maintained its "buy" rating and $15 price target following the results, the Fly reports. Despite the miss, the company continues to have positive catalysts.

Although Photronics lacks visibility, the firm recommends buying shares.

About 1.07 million of the company's shares changed hands so far today compared to its average volume of 295,137 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures.

But the team also finds that the company's cash flow from its operations has been weak overall.

Recently, 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.

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

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