NQ Mobile Inc (NQ) Earnings Preview: Will It Beat Again?

NQ Mobile Inc (ADR) (NYSE:NQ) will release its next earnings report on Thursday. Shares have been extremely volatile, particularly because of all the noise surrounding the stock. The Chinese company does have a consistent track record of beating estimates though, so investors may be expecting quite a lot this time around.

Consensus estimates indicate expectations of 32 cents per share in earnings on $62.83 million in revenue. Analysts are expecting the company to guide for revenue of $65.5 million for the first fiscal quarter of the year.

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NQ Mobile has beaten for 11 consecutive quarters

Seeking Alpha contributor Justin Giles has put together some interesting data about NQ Mobile Inc (ADR) (NYSE:NQ) and other Chinese companies. He notes that at the time of the company’s last earnings report, it announced a Senior Management Share Purchase Plan, which allows management to use their own money to buy up to $3 million worth of NQ shares. He believes this is important because it suggests that investors shouldn’t be surprised if NQ Mobile announces something else alongside its earnings report on Thursday.

He also notes that many Chinese companies have reported record-breaking results recently, which he suggests means that the economy in China isn’t as bad as some are saying it is. In fact, he notes that China’s economy is growing by almost 8%, while the U.S. economy is growing at just a little higher than 2%. As a result, he suggests that investors “should feel confident” in NQ Mobile Inc (ADR) (NYSE:NQ) heading into the company’s earnings report this week.

Waiting for NQ Mobile’s audit results

One of the key pieces of noise which has been surrounding NQ Mobile Inc (ADR) (NYSE:NQ) of late is the results of its audit. Short-selling firm Muddy Waters accused the company of fraudulent accounting practices, so investors have been waiting anxiously for NQ to announce the results from its audit.

Some believe that little “something else” which NQ Mobile Inc (ADR) (NYSE:NQ) could announce with its earnings this week is the results of that audit.

Is NQ Mobile undervalued?

So what if NQ Mobile Inc (ADR) (NYSE:NQ) ends up missing on census estimates? The author believes the company’s stock is “so undervalued that the impact [of a miss] would be minimal.” He sees “massive upside potential with NQ Mobile, particularly in light of its history of earnings beats