NEW YORK (TheStreet) -- Shares of Nuance Communications (NUAN) - Get Report were retreating 8.01% to $14.99 on heavy trading volume late Tuesday morning after the company reported weaker-than-anticipated revenue for the 2016 third quarter.
After yesterday's market close, the Burlington, MA-based software company posted revenue of $484.9 million, while analysts were expecting revenue of $489.5 million.
Earnings of 38 cents per share topped Wall Street's forecasts by one cent.
For the fourth quarter, Nuance sees earnings per share between 37 cents and 41 cents on revenue of $492 million to $506 million, the Fly noted. Analysts are modeling earnings of 42 cents per share on revenue of $517.5 million.
The company now expects full-year earnings per share between $1.48 and $1.52 on adjusted revenue of $1.965 billion to $1.979 billion. Previously, Nuance guided for earnings per share of $1.48 to $1.52 on adjusted revenue of $1.975 billion to $2 billion, according to the Fly.
Canaccord Genuity maintained its $20 price target and "buy" rating on shares after the results.
The quarter was "choppy as expected" and "mediocre," but the firm said there are signs of continued progress.
"Management alluded to several large deals in the pipeline, cost controls continue to drive operating margin expansion, cash conversion is as healthy as we recall, and a resumption of organic growth is likely in F2017," Canaccord wrote in an analyst note.
About 3.16 million of the company's shares traded so far today compared to its average volume of 1.98 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and good cash flow from operations.
But the team also finds weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Recently, 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.
You can view the full analysis from the report here: NUAN