NUAN Beats FQ1 Expectations, Margin Improvement Continues
Analyst Mike Latimore of Northland Securities maintains his "outperform" rating on Nuance Communications Inc (NASDAQ: NUAN), while raising his estimates for the company. The target price for NUAN is set to $20.
According to Northland Securities, Nuance Communications has reported its FQ1 results ahead of the estimates and the consensus, driven by the better than expected performance of its digital imaging segment and mobile royalties. “Nuance indicated it saw continuation of improvements in the end markets for mobile, enterprise and digital imaging, and continued strength in health care. It expects broad-based organic growth to continue,” the analyst mentions.
NUAN also “indicated it believes the company has not hit an operating margin ceiling and could continue to grow margins for a few years,” the analyst adds. Northland Securities has raised its EPS estimates for FY10 and FY11 from $1.13 to $1.14 and from $1.26 to $1.27, respectively.
