Why Nuance Communications Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of speech-recognition specialist Nuance Communications (NAS: NUAN) are chalking up some nice gains today, up by as much as 14% after the company issued preliminary earnings.
So what: While its official earnings release isn't scheduled until May, the company is giving a peek as it finalizes its figures. Revenue should be between $416 million and $418 million, with non-GAAP earnings per share from $0.42 to $0.43.
Now what: Those figures are higher than both the company's previously issued guidance and the Street's forecast. In February, Nuance said it expected revenue of $395 million to $415 million, with earnings in the range of $0.36 to $0.40 per share. The company may have gotten frustrated that shares have cratered since the last report, and it's letting investors know to expect an upbeat quarter.
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At the time this
article was published Fool contributorEvan Niuowns shares of Nuance Communications, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Nuance Communications. The Motley Fool has adisclosure policy.
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