NEW YORK (TheStreet) -- Shares of NQ Mobile (NQ) are plummeting, sharply down 13.52% to $4.35 on heavy volume in mid-morning trading Friday, after the global provider of mobile Internet services reported third quarter earnings of fiscal year 2014.
For its most recent third quarter, NQ Mobile reported a net loss of $17 million, or 4 cents per share, worse than the loss of $2.4 million, or a penny per share from a year ago, and lower than the 36 cents analysts expected.
Revenue for the third quarter was higher than a year ago to $81.2 million from $54.2 million, but missed analysts' estimates of $90 million in sales.
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NQ Mobile forecast full year 2014 revenue of between $325 million to $326 million, up from the previously issued range of $320 million to $325 million, and higher than 2013 revenue of $196.7 million.
Additionally, the company also cut its board to nine directors from 10.
NQ Mobile also said it agreed to sell its FL Mobile unit in an all-stock deal worth between $570 million and $630 million to Tack Fiori International Group Ltd.
About 3.11 million shares of NQ Mobile traded hands as of 10:40 a.m. Friday, compared to its average volume of about 2.29 million shares a day.
Separately, TheStreet Ratings team rates NQ MOBILE INC -ADR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
- You can view the full analysis from the report here: NQ Ratings Report