
Nuance Communications (NUAN) Stock Falls Ahead of Earnings Release
NEW YORK (TheStreet) -- Shares of Nuance Communications (NUAN) - Get Report closed down by 2.98% to $16.60 on Friday, ahead of the release of the company's fourth quarter earnings results after the close on Monday.
Analysts on average expect the Burlington, MA-based voice and language solutions company to report fourth quarter earnings of 35 cents per share on revenue of $507.84 million.
Those totals are above the earnings of 33 cents per share and $502.3 million in revenue the company reported for the year ago period.
The company has topped analysts' earnings expectations for the past four quarters.
Separately, TheStreet Ratings team rates NUANCE COMMUNICATIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate NUANCE COMMUNICATIONS INC (NUAN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- NUANCE COMMUNICATIONS INC has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NUANCE COMMUNICATIONS INC reported poor results of -$0.47 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus -$0.47).
- NUAN's debt-to-equity ratio of 0.91 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.36 is sturdy.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, NUANCE COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: NUAN
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.








