Please ensure Javascript is enabled for purposes of website accessibility

Why NQ Mobile Shares Jumped Today

By Evan Niu, CFA – Mar 22, 2016 at 12:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors cheered a strong fourth-quarter earnings report.

Image source: NQ.

What: Shares of NQ Mobile (NYSE: NQ) have jumped today, up 16% as of 12:15 p.m. ET, after the company reported fourth-quarter earnings.

So what: Revenue in the fourth quarter hit a new quarterly record of $127.5 million, up 42% over last year. That growth was driven in part by quarterly record revenue for mobile value added services, which comprised $51.4 million of that total, more than doubling year over year. Adjusted net income came in at $43 million, or $0.21 per basic share.

Now what: The company had 198.2 million monthly active users at the end of 2015. NQ continues to make progress divesting various assets as it focuses its efforts and development resources on its core consumer business. For example, the company has been attempting to divest FL Mobile, but has hit some recent hurdles. Mobile gaming and social video revenues are growing nicely, which is the main focus as NQ continues to shift away from enterprise mobility and security.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.