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Cerence (CRNC) to Report Q4 Earnings: What's in the Cards?

Cerence's (CRNC) fiscal Q4 performance is likely to reflect benefits from using AI to design applications for advanced driver-assisted systems in self-driving vehicles.

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This story originally appeared on Zacks

Cerence CRNC is scheduled to report fourth-quarter fiscal 2021 results on Nov 22.

For the fiscal fourth quarter, Cerence expects revenues in the range of $97-$101 million, suggesting year-over-year growth of 6-11%.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $98.7 million, indicating a rise of 8.6% from the figure reported in the year-ago quarter.

The consensus estimate for fiscal fourth-quarter earnings is pegged at 55 cents per share, indicating a decline of 9.8% from the figure reported in the year-ago quarter. The consensus estimate for earnings has been stable in the past 30 days.

 

- Zacks

Cerence Inc. Price and EPS Surprise

Cerence Inc. Price and EPS Surprise

Cerence Inc. price-eps-surprise | Cerence Inc. Quote

 

Cerence’s earnings beat the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 36.93%, on average.

Cerence is expected to have benefited from higher integration of artificial intelligence (AI) to develop connected mobility and an expanding customer base.

Customer Base Continued to Expand

In September 2021, Vietnam’s first domestic car company — VinFast — selected Cerence to power conversational AI across its range of smart electric vehicles (EVs).

Cerence continues to work with Audi to power the latter’s EV launches, including the much-anticipated Audi Q4 e-Tron compact electric SUV.

In July 2021, Visteon announced that it will incorporate Cerence’s conversational AI in Visteon’s Smart Core products.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Cerence has an Earnings ESP of +6.79% but a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

HP HPQ has an Earnings ESP of +1.89% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

HP stock has rallied 29% year to date compared with the Zacks Computer – Mini Computers industry’s growth of 20.1% and the Computer & Technology sector’s return of 28.8% year-to-date.

CrowdStrike CRWD has an Earnings ESP of +1.01% and a Zacks Rank of 3.

CrowdStrike’s shares have increased 25.5% year to date against the Zacks Internet Software industry’s decline of 9.2%. CRWD has outperformed the Computer & Technology sector’s return of 28.8% year to date.

Coupa Software COUP has an Earnings ESP of +33.33% and a Zacks Rank of 3.

Coupa Softwares’ shares have declined 36.1% year to date compared with the Zacks Internet Software industry’s fall of 9.3%. COUP has outperformed the Computer & Technology sector’s return of 28.8% year to date.



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