NEW YORK (TheStreet) -- Shares of DirecTV (DTV) were gaining 0.3% to $90.68 Monday ahead of the satellite TV firm's first quarter earnings announcement before the bell on Tuesday.

Analysts expect DirecTV to report earnings of $1.53 a share and revenue of $8.47 billion for the first quarter.

The satellite TV company reported earnings of $1.53 a share for the fourth quarter of 2014, beating analysts' estimates of $1.40 a share for the quarter. The company reported revenue of $8.92 billion for the fourth quarter, compared to analysts' estimates of $8.91 billion.

In the first quarter of 2014, DirecTV reported earnings of $1.09 a share, missing analysts' estimates of $1.50 a share. The company saw revenue of $7.86 billion in the year-ago quarter, missing analysts' estimates of $7.91 billion.

TheStreet Ratings team rates DIRECTV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DIRECTV (DTV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • DIRECTV reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DIRECTV increased its bottom line by earning $5.42 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($6.00 versus $5.42).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Net operating cash flow has decreased to $1,643.00 million or 19.42% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Media industry average, but is greater than that of the S&P 500. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from $810.00 million to $778.00 million.
  • You can view the full analysis from the report here: DTV Ratings Report

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