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 (Nasdaq: 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.

Interested in more info on Nuance Communications? Add it to your watchlist by clicking here.

Fool contributor Evan Niu owns shares of Nuance Communications, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Nuance Communications. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1872450, ~/Articles/ArticleHandler.aspx, 4/19/2014 9:13:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...