United Online (UNTD) Soars on Revenue Beat

Updated to correct ownership of listed properties in third paragraph.

NEW YORK (TheStreet) -- Shares of United Online (UNTD) are flying on Thursday after the company reported better-than-expected quarterly revenue.

By midafternoon, the stock had climbed 28.2% to $14.14. Trading volume of 2.2 million was more than four times its three-month daily average.

In the three months to December, the owner of social network Classmates recorded revenue of $62.6 million, higher than consensus of $59.2 million according to Thomson Reuters estimate averages.

Profits came in under expectations, however. Net income of 32 cents a share fell short of analyst estimates by 15 cents a share.

Management expects current-quarter sales between $52.5 million and $55 million, in-line with consensus of $53.99 million.

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TheStreet Ratings team rates UNITED ONLINE INC as a Sell with a ratings score of D+. The team has this to say about their recommendation:

"We rate UNITED ONLINE INC (UNTD) a SELL. This is driven by several weaknesses, 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."

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