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What: Shares of NQ Mobile (NYS: NQ) have plunged today by as much as 15% after the company reported first-quarter earnings.
So what: Revenue jumped to $16 million, topping the high end of the company's guidance, while earnings per share came in at $0.04. Sales topped expectations, but the market was looking for $0.13 per share in profit.
Now what: NQ Mobile also announced its intention to acquire a 55% majority stake in Beijing NationSky Network Technology in a cash-and-stock transaction that's expected to close this quarter, although no other financial terms were disclosed. Canaccord Genuity is reiterating its "buy" rating and raising its price target to $17, as NQ Mobile has a strong presence in China. The company also raised its full-year revenue guidance to a range of $73 million to $75 million.
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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy.
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