NEW YORK (TheStreet) -- Diebold (DBD - Get Report) was gaining 8.8% to $36.10 Thursday after beating analyst estimates for revenue in the fourth quarter.

The software company posted earnings of 57 cents a share in the fourth quarter, missing analyst estimates of 59 cents a share by just 2 cents. The company saw revenue increase 3.4% year-over-year to $811.4 million in the quarter. Diebold's revenue easily beat analyst estimates of $801.1 million for the quarter.

For the full year 2014 Diebold expects revenue of between $1.65 and $1.85 a share. That's in-line with analyst estimates of $1.79 a share. The company expects revenue growth in the low single digits.

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

"We rate DIEBOLD INC (DBD) 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 increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • DBD, with its decline in revenue, slightly underperformed the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 233.7% when compared to the same quarter one year ago, falling from $16.22 million to -$21.69 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, DIEBOLD INC'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: DBD Ratings Report