NQ Mobile (NYSE:NQ) has had an incredible time in the market for the past few days, and for good reason. The company recently reported earnings beating all expectations. Today, we'll take a look at the earnings report, what we're seeing from the stock today, and what we can expect to see from NQ moving forward. So, let's get right to it...
NQ Mobile Reports Solid Earnings
As mentioned above, NQ Mobile reported earnings for the most recent quarter earlier this week as expected. However, what wasn't expected was the fact that the company would absolutely blow away analyst projections and show strong year over year growth. Here's what we saw from the earnings report...
- Earnings Per Share – In terms of earnings per share, NQ absolutely blew away expectations. In the quarter, analysts expected that the company would report earnings in the amount of $0.18 per share. However, the company actually reported earnings $0.03 ahead of expectations at $0.21 per share.
- Top-Line Revenue – When it comes to revenue, NQ also had a tremendous quarter. During the quarter, the company reported revenue in the amount of $127.50 million. Not only did this number come in ahead of analyst expectations, it proved a 42.1% year over year growth total.
How The Market Reacted To The News
As investors, we know that any time there is news with regard to a publicly traded company, we can expect to see movement in the value of the stock associated with that company. When there is positive news reported, we can expect to see strong gains. Adversely, when negative news is reported, we can expect to see losses. On top of this, the news that tends to drive the most momentum in stocks is earnings. So naturally, with the positive earnings release, we've seen strong momentous gains on NQ. Not only has the stock grown substantially over the past couple of days, the strong growth is continuing today. Currently (9:57), NQ is trading at $4.49 per share after a gain of $0.14 per share or 3.22% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from NQ Mobile. The truth is that investors are ultimately investing to see growth. Through the release of the solid earnings report, NQ Mobile has proven its ability to generate growth for its investors. However, my bullish opinion goes far beyond the earnings report released by the company. The truth is that I'm incredibly impressed with the company's ability to generate solid gains with relatively little by way of expenses. After all, when was the last time you saw a company report less than $200 million in gross revenue and report earnings in the amount of $0.21. The bottom line here is that NQ is great at managing the company for a small cost. At the end of the day, the company has a great list of products, strong management team, and an inherent ability to generate gains. All in all, I'm expecting to see strong growth from NQ moving forward.