NEW YORK (TheStreet) -- Nuance Communications (NUAN) was falling -2.3% to $15.17 in after-hours trading Thursday despite beating analysts' expectations for earnings and revenue in the fiscal second quarter.
For the second quarter Nuance reported earnings of 28 cents a share, beating the Capital IQ Consensus Estimate of 23 cents a share by 5 cents. Revenue grew 1.2% from the year-ago quarter to $490 million. Analysts expected revenue of $484.17 million for the quarter.
"We are pleased with our second quarter and first half performance, particularly in our Healthcare and Mobile & Consumer businesses," Nuance CEO Tom Beaudoin said in a press release. "We exceeded our targets for revenue, EPS and bookings. A growing proportion of our revenue and bookings continues to shift toward recurring revenue models, which reflects in our growing deferred revenue. Balancing more aggressive moves to reduce costs and improve productivity with investments in our products and markets, we believe we are well-positioned for renewed growth and profitability."
Must read: Warren Buffett's 10 Favorite Growth Stocks
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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."