For the year, the stock price of Nuance (NUAN) -- which develops speech recognition software -- has been in a range of roughly $14 to $17. Unfortunately, in light of the fiscal third-quarter results, the company was unable to break out of this trend and the stock price is off 10% to $15.50. What's more, it looks like the stock will be range-bound for some time.

In the quarter, Nuance posted revenues of $273.2 million, up 13.4% over the past year. True, when accounting for acquisitions, the revenues were $293.4 million. However, the Wall Street consensus was for $300.4 million.

Continue reading Nuance Q3 Results Do Not Speak to Investors

Nuance Q3 Results Do Not Speak to Investors originally appeared on BloggingStocks on Tue, 10 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• American Eagle Outfitters Inc. (AEO) Q3 results were so-so, and it declined to offer a Q4 outlook.
• Benihana Inc. (BNHNA) was downgraded following its weaker-than-expected Q2 results.
• Campbell Soup Co. (CPB) reported better-than-expected Q1 earnings revenue fell short of estimates.
• Deere & Co. (DE) Q4 earnings easily topped low expectations and its cash flow is strong.
• Dollar Tree Inc. (DLTR) strong Q3 numbers topped the Street view and it offered Q4 and full-year guidance.
• Eastman Chemical Co. (EMN) earnings prospects led one analyst to upgrade the stock.

Continue reading Earnings highlights: Campbell, Deere, Dollar Tree, Hewlett-Packard, J. Crew, Tiffany ...

Earnings highlights: Campbell, Deere, Dollar Tree, Hewlett-Packard, J. Crew, Tiffany ... originally appeared on BloggingStocks on Sat, 28 Nov 2009 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Nuance Communications (NUAN) Q4 earnings beat estimates

Nuance Communications (NUAN) Q4 earnings beat estimates originally appeared on BloggingStocks on Tue, 24 Nov 2009 13:50:00 EST. Please see our terms for use of feeds.

"For investors with a more aggressive bent, one stock on our radar is Nuance Communications (NASDAQ: NUAN)," says trading and investing expert Bill Martin.

In BullMarket.com, he explains, "The firm's core niche is producing speech-based voice-recognition and synthesis software for use in corporate customer-care operations, mobile applications including the new iPhone and to automate health records."

"Nuance creates those automated voices you have to listen to when what you really need is a human being to tell you why your cable modem isn't delivering the Internet.

Continue reading Nuance (NUAN): Invest in speech recognition

Nuance (NUAN): Invest in speech recognition originally appeared on BloggingStocks on Fri, 19 Jun 2009 11:30:00 EST. Please see our terms for use of feeds.

Alas, I had to say good-bye to an old friend Nuance Communications (NASDAQ: NUAN). This is a technology company that specializes in speech-recognition software and digital-document solutions, and it competes with the likes of IBM (NYSE: IBM) and Microsoft (NASDAQ: MSFT). It's a cool business, although it grows by acquisition, so you do have to watch that part a bit (i.e., checking the GAAP vs. the non-GAAP numbers, cash flows, etc.). The 52-week high on the stock is $22.55; the 52-week low is $9.31. I remember thinking when the stock hit the high that maybe it was time to sell out. I wish I had. But I had confidence in its long-term future. I still do.

As we all know, though, everything has changed. The financial crisis is bringing everything down to irrational price levels. Shorting is one of the only ways to make money. And capital preservation is now on the top of everyone's agenda. That's what my sale of Nuance was about. It's one of the few stocks I owned that still showed a profit. I bought in well below $10 per share. I sold my shares on Friday for $10.13. I can always buy them back when things settle down. I should have sold a lot earlier during the downtrend; I could have generated more proceeds.

And that's one of the reasons why I'm writing this post. I want to tell you why I didn't try to raise some cash by selling Nuance at a better time period. I want to help you not be the idiot that I was. Okay, ready? Here goes. I didn't sell earlier because I held Nuance in a taxable account and didn't want to deal with paying the capital-gains taxes in '09. Like they say, if you get too cute about avoiding taxes, don't worry, you won't owe them because you'll have no profit. And that's a great way to get rich, of course (big sarcasm there, in case you didn't notice).

Continue reading I sold Nuance Communications -- here's why

I sold Nuance Communications -- here's why originally appeared on BloggingStocks on Sat, 11 Oct 2008 14:10:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Applied Materials Inc. (NASDAQ: AMAT) Q2 profits declined on a glut of flash memory chips.
• Bally Technologies Inc. (NYSE: BYI) beat Q3 expectations and offered full-year guidance.
• Barclay's (NYSE: BCS) reported a big Q1 loss on credit-related write-downs.
• Constant Contact Inc. (NASDAQ: CTCT) saw big increases in Q1 revenues and in its customer base.
• Deere & Co. (NYSE: DE) Q2 profits rose on international demand, but results just missed estimates.
• Fluor Corp.'s (NYSE: FLR) strong Q1 results are a signal for the energy sector, says Jim Cramer.
• Freddie Mac (NYSE: FRE) Q1 loss widened on the housing slump, but not as much as forecast.
• IndyMac Bancorp Inc. (NYSE: IMB) narrowed its loss but predicted it wouldn't see a profit in 2008.
• LDK Solar Co. Ltd. (NYSE: LDK) Q1 earnings topped forecasts and it raised its outlook.
• MBIA Inc. (NYSE: MBI) reported a larger-than-expected Q1 loss due to write-downs.
• Mindray Medical International Ltd. (NYSE: MR) beat Q1 expectations and raised its full-year guidance.
• Nuance Communications Inc. (NASDAQ: NUAN) Q2 earnings were in line with analysts' expectations.
• ON Semiconductor Corp. (NASDAQ: ONNN) beat Q1 expectations and raised its Q2 revenue forecast.
• RealNetworks Inc. (NASDAQ: RNWK) beat Q1 estimates and announced share buybacks and a spin off.
• Salary.com Inc. (NASDAQ: SLRY) missed Q1 forecasts, leading to analysts' downgrades.
• Sykes Enterprises Inc. (NASDAQ: SYKE) beat Q1 estimates and raised its Q2 and full-year forecast.
• Syniverse Holdings Inc. (NYSE: SVR) beat Q1 expectations on strength in "messaging and mobil data."
• Toll Brothers Inc. (NYSE: TOL) warned of lower Q2 profits and more "challenging times" ahead.
• Website Pros Inc. (NASDAQ: WSPI) reported flat earnings despite soaring revenues and operating income.

Continue reading Earnings highlights: Deere, Freddie Mac, Applied Materials, Barclay's and others

Earnings highlights: Deere, Freddie Mac, Applied Materials, Barclay's and others originally appeared on BloggingStocks on Sat, 17 May 2008 16:10:00 EST. Please see our terms for use of feeds.

Nuance Communications (NASDAQ: NUAN), a business devoted to speech recognition technologies and document solutions, reported Q2 earnings earlier this week. Those of you who own this stock know that the company oftentimes puts forth a complicated earnings release, full of GAAP and non-GAAP stats. This is due, in part, to the company's acquisition strategy (not long ago, I wrote about Nuance's purchase of eScription). So, on a GAAP basis, don't expect much. Net loss per diluted share expanded to $0.13 versus a net loss per diluted share of $0.01 in last year's second fiscal quarter (there was a significant non-cash-stock-based compensation charge included in the current quarter). Top-line revenue did well on a GAAP basis, however, rising 54%. Again, though, this growth was due to acquisitions.

On a non-GAAP basis, things look much brighter. Revenues rose 63%, and net income per diluted share increased 50% to $0.18. According to Reuters, this figure matched analyst expectations (I would have liked to have seen Nuance beat expectations, but it is what it is). Of course, Nuance stimulates a classic bull-bear discussion in terms of when GAAP profitability becomes more of an issue than non-GAAP success. As a Nuance shareholder, I definitely would like to see GAAP profits on a consistent basis, but I am well aware that management intends to gamble on acquisitions as a method for creating shareholder value, and for now, I am willing to be patient and watch how the company proceeds.

Nuance could be considered a risky, speculative stock in many ways, but I think it has a good chance of doing well over time with its technologies. You'd probably sleep better with competitors Microsoft (NASDAQ: MSFT) and IBM (NYSE: IBM) in your portfolio, but since I own it from around $9 per share, I'm willing to wait and see how the share price moves from this point forward (admittedly, I was considering booking profits recently, but decided against such action). Anyone thinking of getting in now might want to perform a lot of due diligence and wait for the proverbial pullback.

Disclosure: I own shares in Nuance Communications; positions can change at any time.

Nuance Communications matched expectations for Q2: Is the stock a buy? originally appeared on BloggingStocks on Thu, 15 May 2008 13:36:00 EST. Please see our terms for use of feeds.

It's not a terribly exciting day today in terms of the market averages, but there are some stocks doing well. Nuance Communications (NASDAQ: NUAN) is one of them.

Nuance, which provides technologies for speech recognition and solutions for document needs, is up 5% on better-than-average volume as I write this. The catalyst? It appears to be a deal -- what else is new? Nuance is definitely an asset collector, and its business model is based, in part, on leveraging its various acquisitions to drive long-term shareholder value. It needs to do this as effectively as possible to compete with big guns such as Microsoft (NASDAQ: MSFT) and IBM (NYSE: IBM). That can be risky, but so far, the stock has done well for me -- I've owned this for a while, and my cost basis is somewhere around $9 per share. Lately, though, I've been thinking of selling, as the stock still has yet to break through its 52-week high of $22.55 (shares are currently trading around $18.60) -- I thought that event would have happened a while ago, but I was wrong.

The acquisition announced today was for eScription, a business involved in transcription services for the medical industry. Sounds good to me -- anything to do with helping health care become more efficient should be valuable over time. The price tag was pegged at $400 million. I'll be watching the price action on Nuance -- hopefully it'll make a fresh run toward that 52-week high soon.

Disclosure: I own shares in Nuance Communications; positions can change at any time.

Nuance Communications is up today - should I sell? originally appeared on BloggingStocks on Tue, 08 Apr 2008 16:24:00 EST. Please see our terms for use of feeds.