Why NQ Mobile Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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.

Interested in more info on NQ Mobile? Add it to your watchlist by clicking here.

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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