NEW YORK (TheStreet) -- Shares of Sabre (SABR) were down 7.39% to $24.43 on heavy trading volume late Wednesday morning after the company reported lower-than-anticipated 2016 third quarter results and gave a downbeat forecast.
Before the opening bell, the Southlake, TX-based travel technology company posted adjusted earnings of 27 cents per share, falling short of analysts' estimates of 33 cents per share.
Revenue rose 6.9% year-over-year to $839 million but missed Wall Street's projections of $852 million.
For the fourth quarter, the company projects that revenue will grow between 8% to 12% over last year's fourth quarter revenue of $758 million. Wall Street is modeling revenue of $834 million for this year's period.
For the full year, Sabre expects adjusted earnings per share of $1.34 to $1.40 on revenue between $3.37 billion and $3.40 billion. Analysts surveyed by FactSet are looking for adjusted earnings of $1.43 on revenue of $3.39 billion.
CEO Tom Klein said that growth rates in the third quarter "did not meet the standards we have set for the business, even as most aspects of underlying business performance remained strong."
More than 3.91 million Sabre shares have traded so far today vs. the 30-day average of 2.57 million.
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 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 robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: SABR