Estimates Revised After Nuance's Recent Acquisitions

Goldman Sachs has published a research report on Nuance Communications, Inc. (NASDAQ: NUAN) and has revised its forecast model after Nuance recently made some acquisitions. Analyst Day for the company is scheduled for December 9th.

In the report, Goldman writes "Our revised model more explicitly takes into account some revenue contribution from the approximately $50 mn of M&A activity that likely came late in Nuance's September quarter. We understand the company acquired two domestic healthcare transcription outsourcers – OSi and Encompass – as well as some other small assets outside of the healthcare space. We lift our FY11 revenues from $1,326 mn to $1,349 mn, now a little ahead of the Street at $1,340. Our FY11 non-GAAP EPS lifts to $1.32 from $1.29 prior, now just a penny shy of the Street at $1.33. Our FY12/13E EPS lifts to $1.43/$1.54 from $1.39/$1.50 due to the incremental revenue, though we remain below the Street at $1.48/$1.67."

Goldman maintains its Neutral rating and $17.50 price target.

Nuance Communications closed yesterday at $17.90.