Nuance Communications (NUAN) Stock Price Target Reduced at Leerkink

NEW YORK (TheStreet) -- Shares of Nuance Communications (NUAN) - Get Report are down by 3.2% to $16.66 Wednesday afternoon, after the company reported lower-than-expected revenue for the 2016 second quarter on Tuesday.

After yesterday's market close, Nuance reported "mixed" second quarter results, so Leerink reduced its price target on the stock to $22 from $23 and reiterated its "outperform" rating this morning.

The company reported earnings of 38 cents per diluted share for the 2016 second quarter, above analysts' expectations of 35 cents per diluted share. Nuance reported second quarter revenue of $478.7 million, below analysts' expectations of $491.1 million.

Nuance showed "top-line strength in its growth segments in the quarter, offset by revenue erosion and revenue model transition issues leading to a top-line miss, but strong cost-cutting delivered a bottom line beat," the firm said in an investor note.

Nuance is a provider of voice recognition solutions and natural language understanding technologies, headquartered in Burlington, MA.

Separately, TheStreet Ratings rated Nuance Communications as a "hold" with a score of C.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.

Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

The primary factors that have impacted this 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 solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, TheStreet Ratings finds that the company's return on equity has been disappointing.

You can view the full analysis from the report here: NUAN