Updated from 7:52 a.m. EDT.
NEW YORK (TheStreet) -- Shares of Discovery Communications (DISCA) were dropping in mid-morning trading on Tuesday after the company posted weaker-than-expected earnings and revenue for the 2016 third quarter.
Before the market open, the Silver Spring, MD-based media company reported adjusted earnings of 40 cents per share, below analysts' estimates of 43 cents per share, according to FactSet.
Revenue of $1.56 billion missed Wall Street's projections of $1.57 billion.
"While we faced challenging but expected headwinds this quarter, Discovery is well positioned for long-term growth driven by our well-defined global brands, differentiated content and favorable distribution agreements," CEO David Zaslav said in a statement.
Earlier this month, Discovery agreed to spend $100 million for a 39% stake in digital media company Group Nine Media. Under the terms of the deal, Group Nine will also receive Discovery's digital network Seeker and production studio SourceFed.
Discovery expects the transaction to close in the 2016 fourth quarter.
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 revenue growth, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.