UPDATE: Martha Stewart Tops Q4 Expectations, Shares Gain

Shares of Martha Stewart Living Omnimedia Inc. MSO gained more than 3% in after-hours trading after the company reported better-than-expected results for the fourth quarter. The New York-based company posted quarterly earnings of $6.8 million, or $0.12 per share, compared to $7 million, or $0.12 per share, in the year-ago period. Its revenue fell to $41.4 million from $47.4 million. However, analysts were expecting a profit of $0.07 per share on revenue of $ 39.53 million. Revenue from publishing segment slipped to $24.6 million in the fourth quarter, from $28.4 million, in the year-ago quarter. Merchandising segment revenue fell to $15.9 million from $18.2 million, while broadcasting segment revenue gained to $0.9 million from $0.8 million. Total operating income climbed to $7.0 million from $5.9 million. "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," said Dan Dienst, Chief Executive Officer. Martha Stewart shares rose 3.08% to $5.02 in the after-hours trading session.