UPDATE 1-Czech CEZ Q3 net profit below market forecast

* Net profit, EBIT below fcast, revenue above fcast

* Stock underperforms

(Adds stock reaction, details)

PRAGUE, Nov 12 (Reuters) - Czech power group CEZ(CEZPsp.PR), eastern Europe's largest listed company, reported a slightly worse-than-expected 2-percent drop in third quarter net profit due to falling demand from harder hit industries.

CEZ reported a net profit of 12.08 billion crowns ($711.4 million) versus expectations of 12.57 billion. Revenue rose to 42.986 billion crowns from 41.40 billion and above expectations of 42.38 billion.

Shares in CEZ fell 1.2 percent to 881 crowns at opening, before gaining some of the losses back to trade 0.56 percent down at 0914 GMT. The PX index .PX was up 0.43 percent.

The stock has gained 17 percent over the past year versus PX's 40 percent rise.

Operating profit was 13.631 billion crowns, below market forecast for 15.17 billion, and below last year's 16.34 billion.