Nuance beats Q1 profit estimates

FireEye, Cognizant and Netgear also reported quarterly results Wednesday.
Written by Natalie Gagliordi, Contributor

Nuance led the earnings parade on Wednesday, releasing its fiscal first quarter earnings and revenue results after the bell. The voice recognition software giant posted non-GAAP earnings of 27 cents per share on revenue of $$418.3 million.

Wall Street was expecting earnings of 23 cents per share on revenue of $406.6 million. Nuance's shares were up just over 3% in late trading.

Nuance said healthcare revenue was down 1% to $270.5 million, while enterprise revenue was up 7% to $138.5 million.

"Our pivot to the cloud was bolstered by strong Dragon Medical cloud growth and notable demand from our new cloud solutions, including PowerScribe One and CDE One," said Nuance CEO Mark Benjamin. "We delivered record revenue in our Enterprise business and made important progress with international expansion. Our performance thus far this year enables us to re-affirm our full-year revenue and ARR outlook, while raising our EPS guidance."

Shares of Nuance were up over 3% after hours.

FireEye, which sells security software that helps businesses prevent and respond to cyber attacks, reported a net loss of $49.2 million, or 23 cents a share. Non-GAAP earnings came to 7 cents a share on revenue of $235 million. Wall Street was looking for earnings of 4 cents a share with at least $226.6 million in revenue.

For the year, FireEye reported non-GAAP net income per share of 5 cents per share on revenue of $889 million, up 7% from a year ago.

"We continue to accelerate our transformation to a comprehensive security solutions company," said FireEye CEO Kevin Mandia. "Our higher growth solutions, which include Platform, Cloud Subscription, Managed Services and Mandiant services, were 59 percent of our billings in the fourth quarter and increased 23 percent from a year ago. We anticipate that these solutions will continue to eclipse the on-premise portion of our business in 2020."

In terms of guidance, the company said it expects revenue in the range of $222 million to $226 million for the fiscal first quarter. Analysts are expecting revenue of $222.6 million.

Meanwhile, Cognizant reported a fourth quarter net income of $395 million, or 72 cents a share, on revenue of $4.3 billion, up 3.8% from a year ago. Non-GAAP earnings for the fourth quarter were $1.07 a share.

Wall Street was expecting Cognizant to report non-GAAP earnings of $1.04 a share on revenue of $4.23 billion.

For 2019, Cognizant reported net income of $1.8 billion, or $3.29 a share, on revenue of $16.8 billion, up 4% from 2018.

Cognizant CEO Brian Humphries said the company is entering 2020 with "renewed vigor and optimism" as the company continues to make progress against key initiatives. 

Elsewhere, Netgear delivered solid fourth quarter results strong relative to expectations.

The networking company reported net loss of $420 million, or a penny a share, on revenue of $253 million. Non-GAAP earnings were 34 cents a share.

Wall Street was looking for earnings of 29 cents a share on revenue of $245.8 million.

For the first quarter, Netgear expects revenue to be in the range of $205 million to $220 million, well below analyst estimates for revenue of $233.8 per share.  

Netgear CFO Bryan Murray said the light guidance was due to "reduced service provider shipments as carriers are awaiting roll outs of 5G product offerings, and our continued efforts to rebalance the channel inventory mix towards WiFi 6 products." 

Shares of Netgear were down almost 4% after hours.

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