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Nuance ups FQ1 guidance, shares +7.5% AH

  • Nuance (NUAN) now expects to report FQ1 (Dec. quarter) revenue of $487M-$491M and EPS of $0.23-$0.24. That's above prior guidance of $477M-$487M and $0.18-$0.21, and a consensus of $482.5M and $0.20. (PR)
  • Nuance also announces it has hired former Symantec sales EVP Bill Robbins to be its new sales chief.
  • FQ1 results arrive on Feb. 10. Nuance's shares were battered after the company provided disappointing FQ1 and FY14 guidance in November.
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Comments (6)
  • dgulick
    , contributor
    Comments (1562) | Send Message
    NUAN up +9% after hours. Anyone else think they low-balled their prior guidance to depress shares for the $300M they had left for share buybacks? Will be interesting to see how much they bought last quarter.
    21 Jan, 04:47 PM Reply Like
  • pagreen1966
    , contributor
    Comments (601) | Send Message
    You've got to hand it to Carl Icahn he certainly knows how to pick them!


    Could this be the start of a run like Carl's pick of a year or so ago - (NFLX) - which has more than doubled since he bought in?
    21 Jan, 04:54 PM Reply Like
  • dgulick
    , contributor
    Comments (1562) | Send Message
    <<more than doubled>>


    Actually 5x in a little over a year (Carl bought NFLX at 58, sold half at 320, still holds 4.5% of the company). But I agree with your sentiment, NUAN is going to be the NFLX of 2014, ridiculously undervalued here.
    21 Jan, 05:14 PM Reply Like
  • jameskm03
    , contributor
    Comments (107) | Send Message
    5x would put NUAN as a $25B market cap and share price around $75. I think a double from here in 2014 assuming the market doesn't completely fall apart is possible.


    This is really good news either way because last earnings they made it sound like it was going to take another year before things really start to turn around.
    21 Jan, 05:35 PM Reply Like
  • dgulick
    , contributor
    Comments (1562) | Send Message
    5x on NUAN in 2014 may be a bit sporty, but I think 3x by 2015 is not just doable, but likely. Even bookings that they began reporting last quarter are above analyst consensus by $200M for 2014. Analysts got burned in 2013 as reporting came in below estimates and as a result they are being overly conservative with NUAN right now. But updates/upgrades will be coming this year, the total global voice recognition market is projected to double in the next 5 years as we'll be talking to our phones, tablets, laptops, cars, TVs, game consoles, call centers for our banking, insurance, etc. to do everything that we currently do with typing and swiping. My favorite investments are paradigm shifting ideas that are enabled by technology advances. NFLX and P are recent favorites (both 5x returns for those that followed me) as they took incredible advantage of the inflection point reached in home and mobile broadband expansion that allowed them to reinvent television and radio. We are currently at a similar game-changing inflection point in computing power that will allow us to communicate with technology in the same way we communicate with each other, by voice, and the industry will see rather explosive growth going forward.


    Anyone remember Scotty when they traveled back in time in Star Trek IV?
    "a keyboard... how quaint" (lol)
    22 Jan, 10:08 AM Reply Like
  • Humble Eagles
    , contributor
    Comments (1932) | Send Message
    Voice control is the next big thing imo. Especially if they can bring it onboard tablets and smartphones in the near future. So many things they can do with voice. Icahn isn't a bad bird dog, either! NUAN is a top name if not the top name. Glad they had a good qtr.
    21 Jan, 06:52 PM Reply Like
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