Why NQ Mobile (NQ) Is Plummeting Today

NEW YORK (TheStreet) -- NQ Mobile (NQ) is tumbling on Friday after posting below-consensus earnings after market close a day earlier.

By market open, shares had taken off 13% to $13.92.

The mobile internet services provider recorded fourth-quarter net income of 22 cents a share, 10 cents lower than analysts surveyed by Thomson Reuters had expected.

However, revenues climbed 126.1% year over year to $67.9 million, beating estimates by just over $5 million.

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TheStreet Ratings team rates NQ MOBILE INC -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate NQ MOBILE INC -ADR (NQ) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

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