NEW YORK (TheStreet) -- Shares of KAR Auction Services  (KAR)  closed lower by 7.37% to $38.94 on heavy trading volume on Friday as the company reported lower-than-expected earnings for the 2016 third quarter after yesterday's market close. 

KAR Auction Services posted adjusted net income of 50 cents per share, falling short of Wall Street's expected 53 cents per share. 

Revenue came in at $773.8 million, above analysts' projected $768.6 million. 

KAR Auction also backed its full-year adjusted net income forecast of $2.03 to $2.18 per share, while the FactSet consensus is $2.13 per share. 

Additionally, the company's board approved a $500 million share buyback program. 

KAR Auction is a provider of whole car auction services in North America and salvage auction services in North America and the U.K. 

About 4.68 million of the company's shares changed hands today vs. its average 30-day volume of 868,333 shares per day.

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 rates KAR Auction as a Buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, reasonable valuation levels and notable return on equity. The team feels its strengths outweigh the fact that the company shows weak operating cash flow.

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

KAR Chart KAR data by YCharts

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