Topeka Capital Markets Analyst Says NQ Mobile Revenues Will Probably Be Higher Than Expected, Margins Lower
Speaking to Benzinga, Topeka Capital Markets Analyst Frederick Ziegel said that NQ Mobile Inc (NYSE: NQ) has so much information to put out in Thursday's earnings report that he doesn’t know that anybody can possible have any idea about the numbers.
“My guess is revenues will be higher than people had thought previously, and I suspect margins will be lower,” he said.
Because the company hasn’t reported earnings at all this year, there isn’t much information for investors.
The company did come out and say the first quarter was better than previous guidance, Ziegel pointed out, and provided higher-than-expected guidance for the second quarter.
“They have made acquisitions that they say are immediately accretive,” Ziegel said. “Although, I think they’ve issued around another 15 million shares of stock to do that.”
Ziegel explained that NQ Mobile has made some comments over the past year about the strength of a few of their businesses.
“So, if you take that as gospel, then it would suggest that we’re going to see a much bigger mobile device management business than perhaps people thought before. The same with their gaming business,” he said.
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