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NEW YORK (TheStreet) -- Shares of Martha Stewart Living Omnimedia Inc. (MSO) are higher by 3.08% to $5.02 in after-hours trading on Thursday, following the company's 2014 fourth quarter earnings results, which came in greater than analysts had predicted for the period.

The integrated media and merchandising company said its net earnings were 12 cents per diluted share for the most recent quarter versus the 7 cents analysts were expecting for the quarter.

Earnings per share for the quarter did not change from the year-ago fourth quarter.

Total revenue was $41.4 million, compared to the $39.53 analysts had forecast.

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"We ended 2014 with a more streamlined business, as evidenced by a significant improvement in operating income as a result of the early impact of our partnership with Meredith Corporation which went into effect on November 1. With an optimal cost structure now in place, we are beginning to execute on an aggressive plan to grow our top line through a series of strategic and purposeful partnerships," company CEO Dan Dienst said in a statement.

Separately, TheStreet Ratings team rates MARTHA STEWART LIVING OMNIMD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MARTHA STEWART LIVING OMNIMD (MSO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 157.6% when compared to the same quarter one year ago, falling from -$4.30 million to -$11.07 million.
  • Net operating cash flow has declined marginally to -$7.97 million or 9.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, MSO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • MARTHA STEWART LIVING OMNIMD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MARTHA STEWART LIVING OMNIMD continued to lose money by earning -$0.01 versus -$0.83 in the prior year. For the next year, the market is expecting a contraction of 1300.0% in earnings (-$0.14 versus -$0.01).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, MARTHA STEWART LIVING OMNIMD's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: MSO Ratings Report