Cerence (CRNC) Tops Q1 EPS by 8c, Revenues Beat; Offers 2Q & FY21 EPS Guidance Above Consensus
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Cerence (NASDAQ: CRNC) reported Q1 EPS of $0.59, $0.08 better than the analyst estimate of $0.51. Revenue for the quarter came in at $95 million versus the consensus estimate of $87.91 million.
Sanjay Dhawan, Chief Executive Officer of Cerence, stated, “We had a stronger than expected start to the fiscal year as auto production continued to recover from the impact of Covid-19. Our 23% revenue growth, compared to the same quarter last year, reflects our strong competitive position enabled by our continued focus on innovation and speed of execution.”
Dhawan continued, “We received multiple contract awards for our new applications in the quarter. We won back a major European OEM for both our core technology and new connected services and applications. This was a significant win that will start production in 2023. Another highlight was our agreement with Xevo, a Lear Company, to supply Cerence Pay conversational-AI powered voice technology to Xevo Marketplace consumers. With this contract, along with the launch of our latest application, Cerence TourGuide, we are building a solid foundation to achieve our FY24 target revenue for this category of products.”
Dhawan concluded, “We expect continued year-over-year revenue growth in our second quarter as the auto industry recovers from Covid-19. However, our second quarter guidance accounts for the expected impact of semiconductor shortages on auto production in the first half of the calendar year. According to IHS Markit’s current forecast, these shortages should be resolved by mid-year resulting in auto production growth of 13.7% for the 2021 calendar year. Overall the company is progressing well in all directions; introducing a steady stream of new products, winning new customers, successfully entering adjacent markets, and increasing revenue and profitability.”
Cerence sees Q2 2021 EPS of $0.50-$0.55, versus the consensus of $0.48.
Cerence sees FY2021 EPS of $1.91-$2.10, versus the consensus of $1.99.
For earnings history and earnings-related data on Cerence (CRNC) click here.
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