NEW YORK (TheStreet) -- Shares of Teradata (TDC) - Get Report were declining 7.48% to $27.84 on heavy trading volume late Thursday morning after the company reported lower-than-expected 2016 third quarter revenue and issued a downbeat outlook for the fourth quarter.

Before today's opening bell, the Dayton, OH-based company said that third quarter revenue slid 9% year-over-year to $552 million. Analysts were looking for $557 million.

Adjusted earnings of 69 cents per share in the period beat the FactSet consensus of 59 cents per share.

For the fourth quarter, the analytic data platform provider anticipates adjusted earnings per share between 57 cents and 62 cents on revenue in the range of $620 million to $640 million. Analysts surveyed by FactSet are forecasting earnings of 69 cents per share on revenue of $655 million.

For fiscal 2016, Teradata expects adjusted earnings per share between $2.45 and $2.50. Wall Street is modeling earnings of $2.47 per share for the year.

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More than 2.04 million Teradata shares have traded hands so far today vs. the 30-day average of 1.40 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 compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that revenues have generally been declining.

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

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