NEW YORK (TheStreet) -- Open Text (OTEX) shares are rising, up 8% to $49.76 on Friday, following the release of the company's third quarter earnings report.
The company's board declared a 15% raise in its quarterly cash dividend to 17.25 cents from 15 cents per common share to be paid on June 13, 2014.
However, the Canadian software company also posted earnings and revenue results below Wall Street expectations in the quarter.
The company reported year over year quarterly revenue was up 31% to $442.8 million, missing analysts estimates of $481.85 million, while non-GAAP income of 84 cents per share missed analysts estimates by 7 cents.
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TheStreet Ratings team rates OPEN TEXT CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate OPEN TEXT CORP (OTEX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."