NEW YORK (TheStreet) -- Twitter (TWTR) - Get Report shares are plunging by 9.42% to $27.98 in after-hours trading on Tuesday, due to lower-than-expected guidance for the 2015 fourth quarter, despite the microblogging site's solid third quarter earnings results.
For the fourth quarter, the company expects revenue to be between a range of $695 million and $710 million, compared to analysts' estimates of $741.6 million.
For the latest quarter, the company reported earning 10 cents a share on revenue of $569.2 million.
Analysts had expected Twitter to earn 5 cents a share on revenue of $559.4 million for the quarter. This is the company's first earnings report with co-founder Jack Dorsey leading Twitter as its permanent CEO.
Year-over-year revenue grew 57.6%, helped by Dorsey's turnaround efforts, Reuters reports.
During the latest quarter, the company's total active monthly users (MAUS) increased by 11% to 320 million, but this was slightly down from StreetAccount's estimates of 321.3 million, CNBC.com noted.
Separately, TheStreet Ratings team rates TWITTER INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate TWITTER INC (TWTR) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: TWTR