Why Cerence Stock Is Falling Hard Today

Shares of Cerence (NASDAQ: CRNC), a software company focusing on mobility, plummeted today after the company reported its fiscal third-quarter results for the period ended June 30. Cerence reported non-GAAP (adjusted) earnings per share of $0.43, which were down from $0.62 per share in the year-ago quarter but slightly ahead of analysts' average estimate of $0.42. Investors were disappointed to see that the company's third-quarter revenue declined 8% year over year to $89 million and fell below Wall Street's expectation of $91.7 million.