NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report were gaining in pre-market trading on Thursday as the company posted 2016 third-quarter results that exceeded analysts' expectations and announced job cuts.
Before today's opening bell, Twitter posted adjusted earnings of 13 cents per share, surpassing analysts' expected 9 cents per share.
Revenue came in at $616.0 million, above Wall Street's projected $605.8 million.
For the same period last year, the San Francisco-based social media company earned 10 cents per diluted share and $569.2 million in revenue.
Average monthly active users increased 3% year-over-year to 317.0 million in the 2016 third quarter, which beat analysts' estimates of 316.4 million.
Additionally, Twitter announced that it would be cutting 9% of its workforce as part of a restructuring initiative that focuses on reorganizing the company's sales, partnerships and marketing efforts.
Reports first surfaced last week that the company was considering a major restructuring after takeover interest from Salesforce.com (CRM), Walt Disney Co. (DIS) and Alphabet (GOOGL) faded.
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 Twitter as a Hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, the team finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: TWTR