Nuance Communications Inc. Stock Hold Recommendation Reiterated (NUAN)
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- The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 28.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $122.95 million or 37.32% when compared to the same quarter last year. In addition, NUANCE COMMUNICATIONS INC has also vastly surpassed the industry average cash flow growth rate of -14.53%.
- NUAN's debt-to-equity ratio of 0.84 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that NUAN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.28 is high and demonstrates strong liquidity.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 336.6% when compared to the same quarter one year ago, falling from $9.34 million to -$22.10 million.
- The share price of NUANCE COMMUNICATIONS INC has not done very well: it is down 13.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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