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Nuance Communications, Inc. Message Board

  • jpinvestor89 jpinvestor89 Feb 13, 2013 10:50 AM Flag

    NUAN is a Strong Buy

    NUAN was way oversold recently. In the first quarter, NUAN's sales jumped 28% YOY to $462 million. Non-GAAP earnings of $.35/shr, only 1 cent lowered than the analysts' estimate of $0.36/shr.

    The company will make $1.76 ~ $1.87 per share profit in 2013 even though they lowered the outlook from $1.84 ~ $1.94/share. It was only 3.6%~4.4% change. However, the stock went down 25% since last Friday. The fear was way over blown.

    "I don't think that's a totally fair reaction. Nuance sells voice and character recognition tools not only to other mobile computing giants, but also to a number of completely different sectors. This helps sales and earnings achieve steady climbs in the long term, even if share prices don't always follow suit.

    Health-care sales are growing faster than mobile revenue, and already dwarf the mobile division, with 64% higher sales. In the last three years, no single customer of any kind has accounted for more than 10% of Nuance's sales. Nope, not even Apple.

    So, Nuance is much more diverse than many investors give it credit for, and hooked into the health-care megatrend in a big way. If management takes a conservative tack on guidance due to macroeconomic softness, I don't see how that's a bad thing. My bullish long-term CAPScall on this stock isn't going away today.

    In fact, this looks more like a buy-in window than a signal to panic and sell." - By Anders Bylund.

    The company will still makes $1.76 ~ $1.87 per share profit in 2013. If give a PE of 15~25 to its PPS, What price will NUAN be?

    NUAN is a strong buy!

    Sentiment: Strong Buy

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