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Cerence (CRNC) Reports Q1 Earnings: What Key Metrics Have to Say
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Cerence (CRNC - Free Report) reported $138.34 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 65.4%. EPS of $1.12 for the same period compares to $0.36 a year ago.
The reported revenue represents a surprise of +5.69% over the Zacks Consensus Estimate of $130.89 million. With the consensus EPS estimate being $0.90, the EPS surprise was +24.44%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cerence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Connected services: $96.82 million compared to the $53.75 million average estimate based on two analysts. The reported number represents a change of +426.4% year over year.
Revenues- License: $20.82 million compared to the $57.90 million average estimate based on two analysts. The reported number represents a change of -54.2% year over year.
Revenues- Professional services: $20.69 million versus the two-analyst average estimate of $19.25 million. The reported number represents a year-over-year change of +4.3%.
Shares of Cerence have returned +0.5% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Cerence (CRNC) Reports Q1 Earnings: What Key Metrics Have to Say
Cerence (CRNC - Free Report) reported $138.34 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 65.4%. EPS of $1.12 for the same period compares to $0.36 a year ago.
The reported revenue represents a surprise of +5.69% over the Zacks Consensus Estimate of $130.89 million. With the consensus EPS estimate being $0.90, the EPS surprise was +24.44%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cerence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenues- Connected services: $96.82 million compared to the $53.75 million average estimate based on two analysts. The reported number represents a change of +426.4% year over year.
- Revenues- License: $20.82 million compared to the $57.90 million average estimate based on two analysts. The reported number represents a change of -54.2% year over year.
- Revenues- Professional services: $20.69 million versus the two-analyst average estimate of $19.25 million. The reported number represents a year-over-year change of +4.3%.
View all Key Company Metrics for Cerence here>>>Shares of Cerence have returned +0.5% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.