For the quarter ended June 2023, Cerence (CRNC) reported revenue of $61.66 million, down 30.8% over the same period last year. EPS came in at -$0.04, compared to $0.43 in the year-ago quarter.
The reported revenue represents a surprise of +1.37% over the Zacks Consensus Estimate of $60.83 million. With the consensus EPS estimate being -$0.15, the EPS surprise was +73.33%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $18.58 million versus the two-analyst average estimate of $18.07 million. The reported number represents a year-over-year change of -7%.
- Revenues- License: $25.84 million compared to the $22.74 million average estimate based on two analysts. The reported number represents a change of -44.4% year over year.
- Revenues- Professional services: $17.24 million compared to the $20.01 million average estimate based on two analysts. The reported number represents a change of -23.7% year over year.
Shares of Cerence have returned -10.7% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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