Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of NQ Mobile touched a fresh 52-week-high after skyrocketing more than 21% during intraday trading Tuesday after the Chinese mobile Internet services provider reported second-quarter earnings.
So what: Quarterly net revenue more than doubled year over year to $41.4 million, while non-GAAP earnings rose 86% over the same period to $0.26 per share. For reference, analysts were only expecting adjusted earnings of $0.17 per share on $39.3 million in sales. NQ Mobile's average monthly active user accounts also rose more than 10% sequentially to 122.2 million during the quarter.
Now what: Some investors had wondered whether NQ Mobile could continue its winning streak, especially considering the stock had recently risen 14 trading days in a row going into last Thursday's trading.
Going forward, though, the company also stated it expects net revenue next quarter to be in the range of $50 million to $51 million, so it felt comfortable raising its full-year 2013 revenue guidance to $185 million to $188 million, up from the previously expected range of $179 million to $184 million. Now that NQ mobile has just beat Wall Street's already-lofty expectations, I wouldn't be surprised to see the stock continue its meteoric rise, at least over the short term.
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The article Why NQ Mobile Shares Took Off originally appeared on Fool.com.Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.
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