Maybe they aren't that bad, but there is reason to think that they are. If net margins stay at the 21.9% they were this qtr, the top end of their revenue guidance yields $1.06 eps. That's well below the $1.45 estimate. To get to $1.45, margins have to expand to nearly 30% at the $325 million revenue level.
Maybe margins will expand this much, but given the mobile games and advertising revenues are major growth drivers and that they carry lower margins, it's not irrational to think that they won't.
That's a lame answer with all due respect. Watch the reversal tomorrow when they digest the news and see the growth. Any company that has this type of growth will end up sacrificing some margins to finance the growth. Remember NQ has no debt to speak of.