NEW YORK (TheStreet) -- Shares of Natus Medical (BABY) were climbing 6.68% to $42.35 on heavy trading volume late Wednesday afternoon following the company's better-than-expected 2016 third quarter financial report.

Before the opening bell, the Pleasanton, CA-based newborn healthcare services provider reported adjusted earnings of 39 cents per share, topping analysts' estimates for adjusted earnings of 34 cents per share.

Revenue declined 3.9% year-over-year to $90.9 million but beat Wall Street's projected $89.9 million.

For the fourth quarter, Natus expects adjusted earnings per share to between 52 cents and 55 cents on revenue between $107 million and $109 million. Analysts are looking for adjusted earnings of 48 cents per share on revenue of $104.6 million, according to FactSet.

For the full year, Natus estimates adjusted earnings per share of $1.63 to $1.66 on revenue between $381.2 million and $383.2 million. Wall Street is modeling adjusted earnings of $1.55 per share on revenue of $377.8 million for the year, FactSet notes.

Previously, the company anticipated adjusted earnings per share between $1.67 to $1.70 on revenue of $388 million to $390 million for the full year.

More than 1.26 million shares of Natus have traded hands so far today vs. the 30-day average volume of about 399,000 shares.

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 "buy" with a ratings score of A-.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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


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