NEW YORK (TheStreet) -- Shares of NeoPhotonics (NPTN) were diving 26.22% to $10.75 on heavy trading volume early Friday afternoon after the company reported earnings and revenue that fell short of Wall Street's expectations for the 2016 third quarter.
Following yesterday's market close, the San Jose, CA-based manufacturer of components for communications networks reported adjusted earnings of 6 cents per diluted share on revenue of $103.3 million.
Analysts surveyed by FactSet were looking for adjusted earnings of 14 cents per share on revenue of $104.0 million.
For the fourth quarter, NeoPhotonics sees adjusted earnings per share between 13 cents and 21 cents on revenue of $109 million to $115 million.
Analysts are forecasting adjusted earnings of 19 cents per share on revenue of $114 million, according to FactSet.
More than 3.09 million of the company's shares changed hands so far today, well above its average 30-day volume of 721,416 shares.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth.
But the team also finds that the company's profit margins have been poor overall.
Recently, 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.
You can view the full analysis from the report here: NPTN