Shares of Nuance Communications, Inc. (NASDAQ:NUAN), a leader in artificial intelligence (AI) innovations across multiple industries including healthcare, financial services, and telecommunications, among others, are up 10% Thursday morning after the company released better-than-expected first-quarter results.
Revenue declined slightly compared to the prior year, down to $418.3 million, which still easily topped analysts' estimates of roughly $406 million. Adjusted earnings per share checked in at $0.27, also ahead of analysts' estimates calling for $0.24 per share. The company exceeded both its revenue and earnings-per-share guidance, while also producing margins equal to expectations and posting record revenue in its enterprise business.
Furthermore, the company noted it repurchased 5.7 million shares of common stock and paid down $300 million in high-yield bonds during the first quarter.
"Our pivot to the cloud was bolstered by strong Dragon Medical cloud growth and notable demand from our new cloud solutions, including PowerScribe One and CDE One," CEO Mark Benjamin said in a press release.
Management also felt confident enough after the solid first quarter to bump up its full-year adjusted earnings per share guidance to $0.82 to $0.90, from the prior $0.80 to $0.88 per share. Nuance stock has been on a roll over the past six months, jumping more than 60%. Look for management to try to keep the momentum going in the boom-or-bust tech industry with continued international expansion and cloud growth.