Nuance (NUAN): FQ1 EPS of $0.35 misses by $0.01. Revenue of $492.4 (+28.9% Y/Y, lifted by...

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XRTrader Comments (588)
 
Ugh. Good yoy revenue growth (particularly 49% growth in the healthcare space, where their products lead to cost savings over usual human transcriptionists and should gain continued traction). Yet, they continue do be a little acquisition-happy, which is not good for shareholder value at this point, IMO. But, even if they come in at $1.75 EPS for full year 2013 (at low end of guidance), at $24 they are trading at 13.7x full year guidance. For a company with natural growth of 20% yoy (and acquisition boosted growth near 30% yoy), that still seems like a decent multiple. Particularly given its exposure to healthcare, mobile, and voice - all good segments. I remain long the stock with a 3-5 year time horizon. And, unhappy about it at this point. The financials are a little opaque, and I think management is doing a subpar job. But, the centrality of this name in the spaces they operate in, and the secular growth story are too much to pass up. Will add to my shares again if it drops to $19 (near a 10x multiple).
7 Feb, 05:16 PM Reply Like