Earnings Preview: Nuance Communications

Nuance Communications NUAN will be releasing its next round of earnings this Friday, August 06. For all of the relevant information, here is your guide for Friday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.17 and sales around $333.53 million. Nuance Communications EPS in the same period a year ago totaled $0.18. Sales were $338.40 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 5.56% decline in the company's earnings. Revenue would have fallen 1.44% from the same quarter last year. Here is how the Nuance Communications's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Nuance Communications were trading at $54.52 as of August 04. Over the last 52-week period, shares are up 85.57%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Nuance Communications is scheduled to hold the call at 17:00:00 ET and can be accessed here.