Nuance Communications (NUAN) Stock Falls Despite Positive Quarter

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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."

If you liked this article you might like

Here's What Carl Icahn Bought and Sold in the First Quarter

Wall Street Dissects What Trump's Comey Firing Means for Agenda, Disney Drags on Dow

Stocks Fall as Trump's Comey Firing Distracts From Progress in Tax Cut Plan

Stock Futures Fall After Trump Axes FBI Director Comey

Week Ahead: Department Stores Set to Report Earnings Amid Retail's 'Creeping Armageddon'