What: Shares of China Digital TV Holding Co., Ltd. (NYSE:STV) fell more than 10% Wednesday after the company turned in solid fourth-quarter results.

So what: Quarterly revenue rose 11.9% year over year to $25.9 million. That translated to earnings of $0.17 per diluted share, which was in line with analysts' expectations.

As a result, full-year 2013 revenue and earnings per share came in at $87.2 million and $0.41, respectively. Analysts, on average, were looking for 2013 earnings of just $0.30 per share on sales of $82.4 million.

However, China Digital TV expects current quarter revenue to fall to a range of $16.4 million to $17.7 million, the midpoint of which represents a 14.3% drop from last year's first quarter.

Now what: That could make it difficult for China Digital TV to live up to the expectations of analysts, who went into the report modeling 2014 sales of $86.4 million.

Even though the stock might look like a bargain trading at just 7.4 times last year's earnings, I can't blame investors for stepping back as long as China Digital TV's top-line appears to be moving in the wrong direction. For now, that's why I'm perfectly happy keeping an eye on China Digital TV's progress from the sidelines.

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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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