This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

NQ Mobile Issues Strong 2014 Revenue Guidance

Stocks in this article: NQ

NQ Mobile Inc ADR (NQ) issued strong 2014 revenue guidance of $305 million to $310 million during the recent analyst day meeting.

After attending the recent analyst meeting, T. Michael Walkley and team at Canaccord Genuity point out NQ Mobile Inc ADR (NQ) is well positioned in the mobile security and applications market space.

NQ Mobile's third quarter results

Recently, the leading global provider of mobile Internet services provider reported strong third quarter results for the period ended September 30, 2013. Its net revenue increased over 110% year-on-year to $54.2 million, surpassing the high-end of the company's previous guidance of $50 million to $51 million.

NQ Mobile's revenue guidance beat estimates

NQ Mobile Inc management's recent revenue guidance at the analyst day meeting surpassed Canaccord Genuity's estimates of $289 million. This translates into 60% year-on-year growth against the analyst's 2013 sales estimates. The analysts anticipate that given NQ Mobile Inc ADR (NQ)'s increasing focus on non-subscription active user monetization, its 2014 sales mix will continue to shift toward Advertising and Enterprise as against MVAS. Canaccord Genuity's analysts point out that NQ's 2014 sales guidance assumes a mix of 45 to 50% MVAS, 20 to 25% advertising and 25 to 30% enterprise.

Canaccord Genuity's analysts point out that NQ management sounded confident of findings in the special committee's independent review of recent short seller accusations.

NQ to leverage new products

The analysts also point out that during the analyst day, NQ Mobile Inc ADR (NQ) management highlighted an increasing focus on monetizing the company's large and growing global user base through a diverse set of new products that include core products NQ Vault, NQ Family Guardian and NQ Mobile Security.

The analysts anticipate NQ Mobile Inc ADR (NQ) will continue to grow its paying premium user totals within its under-penetrated active user base by leveraging new products including NQ Care, Music Radar, NQ Live and increasingly through gaming and both in-app and in-game advertising.

Canaccord Genuity's analysts believe such a move aligns with NQ Mobile Inc ADR (NQ)'s strategy to grow overtime into a larger mobile software company.

Enthused by NQ's 2014 sales guidance above the analysts' estimates, Canaccord Genuity's analysts have increased their 2014 proforma EPS estimate from $1.43 to $1.50 and increased their price target for NQ Mobile Inc ADR (NQ) to $29 with a Buy rating.

-By Mani

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,809.03 -5.91 -0.03%
S&P 500 2,067.76 +0.73 0.04%
NASDAQ 4,765.2670 +7.0150 0.15%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs