Shares of Nuance Communications Inc. fell sharply in premarket trading Tuesday after the digital incorporation software maker posted a wider first-quarter loss, as one-time costs related to acquisitions piled up.
Several analysts were disappointed Nuance's results, released after the close of trading Monday. Goldman Sachs' Derek R. Bingham reduced his earnings outlook on the Burlington, Mass., company, saying its results indicate "a chink in the Nuance armor."
"Nuance's March report showed that the company's network speech business is not immune from macro (economic) slowing," Bingham said.
Bingham cut his full-year outlook for the company to a profit of 80 cents per share from 86 cents per share. His expectation now matches the average of analyst estimates from a poll by Thomson Financial. He maintained a "Neutral" rating on the stock.
Late Monday, the company said its first-quarter loss widened to 13 cents per share, but said it made a profit of 18 cents per share when excluding one-time costs. The adjusted results were in line with Wall Street expectations.
Friedman, Billings, Ramsey analyst Daniel Ives was more upbeat, saying the company's mobile and health care segments helped offset weakness within its North American enterprise business.
He raised his second-quarter outlook by a penny to 21 cents per share.
Shares lost $1.26, or 6 percent, to $19.75 in premarket electronic trading. On Monday, the stock closed at $21.01.
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