NQ Mobile Inc (NYSE:NQ) reported its earnings for the third quarter of 2013 this afternoon after the market closed on Wall Street. The Mobile services company, which has been the subject of short talk after a Muddy Waters report alleged the company was misleading investors, showed earnings per share of $0.28 on revenue of $54.20M. On today’s market shares in NQ Mobile trended strongly up to finish at $14.31.
In the run-up to the release of today’s report, analysts following NQ Mobile Inc (NYSE:NQ) were looking for earnings of 27 cents per share from the company on revenue totaling $51 million by consensus. The consensus estimates were taken from a Bloomberg study of five analysts studying the mobile services company. Investors were buying into the company after the market closed after the firm announced a plan for senior management to buy three million shares in the firm.
NQ Mobile earnings
In the same three months of 2012 NQ Mobile Inc (NYSE:NQ) showed earnings per share of 16 cents. Revenue in the September quarter of 2012 came in at $25.8 million. Swift increases in earnings and revenue have drive shares in NQ Mobile Inc (NYSE:NQ) up through 2013, but that is not the main factor affecting the company right now.
A Muddy Waters Research report on NQ Mobile Inc (NYSE:NQ) argued that the company was using several illicit methods in order to make the business appear stronger than it is. The research report caused a massive drop in the value of the stock in a single day, and it dominates conversations about the Chinese company as a result.
NQ mobile performance
Since the start of 2013 shares in NQ Mobile Inc (NYSE:NQ) have risen by more than 130%. The company is in the midst of a massive expansion, but the allegation that its business practices are in opposition to the interests of shareholders has taken away much of the growth in value. Shares started the year at just over $6, traded up to more than $25 before the Muddy Waters report and are currently trading at around $14.50.
NQ Mobile Inc (NYSE:NQ) executives are set to host a conference call in order to discuss these earnings at 8:00 PM EST. The firm’s shareholders will want to question management about their defense from the Muddy Waters accusations and the company’s guidance for the current quarter.
