Cerence (CRNC, Financial) reported a second-quarter revenue of $78.01 million, surpassing the analysts' expectation of $75.34 million. This achievement marks the fourth consecutive quarter of positive free cash flow for the company, reflecting its strong performance in delivering high value to leading automakers amid ongoing industry challenges.
CEO Brian Krzanich highlighted the company's strategic focus on future growth and innovation, emphasizing their role in enhancing driver experiences through the Cerence xUI platform. By collaborating with original equipment manufacturers (OEMs), Cerence is at the forefront of revolutionizing infotainment systems. The company is actively working on both new platform developments and over-the-air updates, facilitating the integration of next-generation features and capabilities for automakers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Cerence Inc (CRNC, Financial) is $11.58 with a high estimate of $16.00 and a low estimate of $8.00. The average target implies an upside of 15.83% from the current price of $10.00. More detailed estimate data can be found on the Cerence Inc (CRNC) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Cerence Inc's (CRNC, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cerence Inc (CRNC, Financial) in one year is $14.44, suggesting a upside of 44.4% from the current price of $10. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cerence Inc (CRNC) Summary page.
