Nuance Communications (Nasdaq: NUAN) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Nuance Communications met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to zero.

Gross margins expanded, operating margins increased, and net margins dropped.

Revenue details
Nuance Communications reported revenue of $417.7 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $417.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $319.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.43. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.01.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.8%, 260 basis points better than the prior-year quarter. Operating margin was 12.4%, 780 basis points better than the prior-year quarter. Net margin was 0.2%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $432.2 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $1.72 billion. The average EPS estimate is $1.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,481 members out of 5,720 rating the stock outperform, and 239 members rating it underperform. Among 1,476 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,439 give Nuance Communications a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nuance Communications is outperform, with an average price target of $30.01.

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