NEW YORK (TheStreet) -- Shares of Nuance Communications (NUAN) were gaining 8% to $16.54 on heavy trading volume Friday after the software company beat analysts' estimates for earnings and revenue in the fiscal second quarter and increased its share repurchase program.
Nuance reported earnings of 30 cents a share for the second quarter, beating analysts' estimates of 24 cents a share for the quarter. Revenue fell 0.4% year over year to $488.06 million for the quarter, above analysts' estimates of $481 million.
The company also announced that it increased its stock repurchase plan by $500 million. The company had $97.1 million remaining under its previous plan, bringing its total share repurchase authorization to $591.7 million.
Nuance expects to report earnings of 25 cents to 29 cents a share and revenue of $468 million to $482 million for the fiscal third quarter. Analysts expect the company to report earnings of 28 cents and revenue of $487.7 million for the quarter.
About 5.9 million shares of Nuance were traded by 12:40 p.m. Friday, above the company's average trading volume of about 1.9 million shares a day.
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, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."