NEW YORK (TheStreet) -- Shares of Southwest Airlines  (LUV) - Get Report  were slumping 7.03% to $39 in pre-market trading on Wednesday as the company reported revenue for the 2016 fiscal third quarter that was below analysts' expectations. 

Before today's opening bell, Southwest said revenue declined 3.4% year-over-year to $5.14 billion, falling short of Wall Street's estimated $5.16 billion. 

Earnings came in at 93 cents per diluted share, above analysts' projected 88 cents per share. 

For the same period last year, the Dallas-based airline earned 94 cents per diluted share on revenue of $5.32 billion. 

Southwest CEO Gary Kelly noted that the company benefitted in the 2016 third quarter from low fuel prices and high traffic levels, despite the operational challenges caused by the company's technology outage in July. 

Revenue per available seat mile (RASM) declined 4.1% during the quarter, which the company attributed to a soft "overall revenue yield environment."

Southwest said it now expects 2016 fourth quarter RASM to fall between 4% to 5% year-over-year. 

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. 

The team rates Southwest Airlines as a Buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, the team feels they are unlikely to have a significant impact on results.

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

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