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Cerence’s CRNC shares have experienced an impressive surge of 387.1% over the trailing six months, outperforming the broader Zacks Computer & Technology Sector’s modest return of 1.1% and the Zacks Computers - IT Services industry’s appreciation of 13.6%.
CRNC’s positive share price movement has been driven by its successful integration of generative AI (Gen AI) solutions, record platform launches and robust partner network. Strong revenue performance and a clear focus on automotive AI innovations powered its growth.
Cerence’s recent collaboration with NVIDIA NVDA strengthened its position in automotive AI. CRNC will utilize NVIDIA’s advanced chip technology that will improve the performance and scalability of its offerings.
However, the rising AI competition poses a threat to Cerence's market share. Maintaining a competitive edge amid increasing AI advancements is a challenge.
Cerence Inc. Price and Consensus
Strong AI Portfolio & Partnerships Drive CRNC
Cerence has positioned itself at the forefront of the AI revolution in the automotive industry by leveraging its diverse product portfolio to meet the growing demand for enhanced in-car experiences. Its solutions include conversational and Gen AI, and audio and communication AI.
CRNC achieved 10 customer wins and launched six Gen AI programs in fiscal 2024, showcasing strong momentum in deploying advanced AI solutions.
Major automotive OEMs, including Microsoft MSFT, Volkswagen, BMW and Renault RNLSY, have implemented Cerence's voice assistance systems to enhance in-car interactions.
CRNC's AI technology powers more than 500 million cars globally, highlighting its extensive market reach and leadership in the automotive AI sector.
The company created a record with 22 platform launches in 2024, four of which debuted in the fourth quarter of fiscal 2024. It recently announced a multi-year agreement with JLR to develop the luxury automaker's next-generation in-car experience. This partnership uses Cerence's AI-enabled technologies to deliver advanced intelligence and capabilities to JLR customers globally.
Cerence's Gen AI technology was chosen by Audi to enhance the capabilities of its in-car assistant.
Rising Competition Impacts CRNC’s Prospects
The rapid advancement of AI technologies has intensified competition in the automotive AI sector. Companies like SoundHound AI compete directly with Cerence in the automotive AI market, focusing on voice recognition and conversational AI solutions.
CRNC's technology has been integrated into 52% of global auto production for the trailing 12 months, showing a minor dip. This decrease is attributed to lower production volumes from key customers.
CRNC’s Sales & Earnings Estimates Show Mixed Trend
The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $57.71 million, indicating a 14.92% year-over-year decline.
The Zacks Consensus Estimate for second-quarter fiscal 2025 non-GAAP earnings is pegged at 2 cents per share, unchanged over the past 30 days. The consensus mark indicates a year-over-year surge of 122.22%.
The company expects revenues for fiscal 2025 to be $236-$247 million. This outlook includes headwinds of $5-$7 million due to a strategic shift from professional service projects.
The Zacks Consensus Estimate for 2025 revenues is pegged at $241.27 million, indicating a year-over-year decline of 27.22%.
The non-GAAP loss per share for the fiscal 2025 is projected between 92 cents and 67 cents.
The consensus mark for 2025 earnings is pegged at 15 cents per share, unchanged over the past 30 days, marking a sharp year-over-year decline of 87.80%.
CRNC has a long history of reporting strong quarterly performances, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 110.86%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Zacks Rank
Currently, CRNC carries a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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CRNC Stock Soars 387% in 6 Months: Will the Bull Run Continue in 2025?

Cerence’s CRNC shares have surged 151.1% in the past month. The Zacks Computer & Technology sector has risen 5.7%, while the Zacks Computers - IT Services sector has declined 1.7% in the same time frame.
The upside can be attributed to Cerence’s strong AI portfolio, expanding clientele and growing global presence in the automotive industry, all of which are supported by a solid network of partners.
Cerence’s expanding partnerships with automakers like Volkswagen, Renault RNLSY, Skoda, and Audi, along with the successful launch of six Generative AI (GenAI) programs in fiscal 2024, highlight the growing demand for its AI-powered solutions in the automotive sector.
Cerence’s focus on GenAI solutions has also led to successful product launches and strong customer engagement. The introduction of CaLLM Edge, the first large language model for automotive edge systems, strengthened its position as a leader in AI-driven automotive solutions.
Cerence Inc. Price and Consensus
However, can CRNC stock move further, driven by its strong portfolio and expanding clientele? Let’s analyze.
Growing Clientele Boosts Cerence’s Prospects
Portfolio strength has been helping Cerence expand its clientele. Partnerships with key industry players, including Smart, Audi, Microsoft MSFT, Tuya TUYA and Renault, have been major drivers.
In September, Cerence partnered with Tuya Smart to integrate multi-lingual text-to-speech for Tuya’s cloud platform, enhancing voice-powered interaction for two-wheeler riders. This partnership further aids CRNC as a leader in voice technologies across multiple transportation sectors.
In November, Cerence introduced CaLLM Edge, an automotive-grade embedded small language model developed in partnership with Microsoft, providing seamless, AI-powered user experiences in vehicles, with improved performance, privacy, and cost efficiency.
Cerence has also expanded its partnership with Renault to enhance the Reno in-car companion with generative AI-powered capabilities, enabling human-like interactions and intelligent, voice-driven assistance.
CRNC Shares Trading Cheap
Cerence’s shares are currently trading at a significant discount to the industry average, making the stock more attractive on the valuation front. The Value Score of B suggests CRNC is trading at a discount.
CRNC has a forward 12-month P/S of 1.29X, which is lower than the Zacks Computers - IT Services 10.77X and Cerence’s five-year median of 2.89X.
Cerence Suffers From Automotive Market Challenges
However, Cerence faces stiff competition across the automotive voice assistance market, negatively impacting the company’s top-line growth.
In the fiscal fourth quarter of 2024, revenues came in at $55 million, which declined 32.1% year over year. The year-over-year decline was largely due to the one-time $12.8 million fixed license revenue signed last year and $9.2 million from the legacy Connected Services contract with Toyota, decommissioned in the fiscal first quarter of 2024.
Cerence’s penetration of global auto production for the trailing 12 months also declined slightly to 52% in the fiscal fourth quarter from 53% in the prior quarter, mainly due to weaker production volumes from its key customers.
CRNC Offers Weak 1Q25 Guidance
For first-quarter fiscal 2025, Cerence expects revenues between $47 million and $50 million. This includes a headwind of $1 million due to a de-emphasis on certain professional service projects.
Non-GAAP loss for the first quarter of fiscal 2025 is projected between 32 and 25 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $49.12 million, indicating a 64.49% decline year over year.
The consensus mark for loss is pegged at 30 cents per share, which declined 11 cents over the past 30 days. CRNC reported earnings of $1.12 per share in the year-ago quarter.
Conclusion
Cerence currently carries Zacks Rank #3 (Hold), which suggests that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Cerence Stock Rises 151% in a Month: Is There More Room to Run?

General Motors Company GM and its joint venture delivered around 373,000 vehicles in China in the second quarter, down 29% year over year. Despite this overall decline, the Detroit-based automaker’s new energy vehicle sales rose 24% year over year, representing a record 38% of GM's overall China deliveries for the quarter.
All of GM's brands in China saw significant declines. Buick deliveries were about 81,000, down from 136,000 in the previous year. Chevrolet delivered almost 10,000 vehicles, down year over year from 48,000. Cadillac delivered about 29,000 vehicles, down year over year from 55,000.
SAIC-GM-Wuling Automobile, a joint venture between GM, SAIC Motor and Guangxi Auto, delivered 252,000 cars, down from 286,000 a year prior.
For individual models, Buick's GL8 family and VELITE 6 EV sold nearly 20,000 and 17,000 units, respectively, and became the brand's best sellers. Cadillac's CT5 upscale sedan led its sales with more than 16,000 units. Chevrolet's Monza sedan was the automaker’s most popular model. GM also announced that the Tahoe full-size SUV, popular in the United States, will soon be available in China.
General Motors and other U.S. automakers have been struggling in China amid increased price competition from local automakers.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Renault SA RNLSY and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2024 sales and earnings suggests year-over-year growth of 20.78% and 62.43%, respectively. EPS estimates for 2024 and 2025 have improved 6 cents and 14 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 5 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.
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General Motors (GM) Q2 China Sales Fall Amid Rising Competition

General Motors Company GM is set to lay off 1,300 workers in two of its Michigan plants as it discontinues the production of Chevrolet Camaro and Chevrolet Bolt.
Among 1,300 workers, 945 are employed at Orion Assembly, which manufactures Chevrolet Bolt models. The production of the models is scheduled to end on Dec 18, 2023, but the layoff will not commence until Jan 1, 2024.
GM plans to retool Orian to manufacture electric trucks, including Chevrolet Silverado EV and GMC Sierra EV. The plant will be ready for production in late 2025.
The automaker plans to dismiss 369 workers from the Lansing Grand River Assembly/Stamping plant, which currently produces the Chevrolet Camaro. Due to the end of Camaro production, 350 workers will be affected starting from Jan 2, 2024. The impacted workers will have job opportunities per the United Auto Workers & General Motors National Agreement.
Per Kevin Kelly, senior director for corporate news relations of GM, the automaker will extend opportunities to affected Orion workers at other Michigan plants. All other salaried employees will be placed in different internal roles.
Amidst UAW strike-related disruptions, GM withdrew and later reinstated profit guidance, projecting a year-over-year decline due to labor issues. The company initially aimed for adjusted EBIT in the $12-$14 billion range for this year, down from $14.5 billion in 2022. However, it now expects 2023 adjusted EBIT within $11.7-$12.7 billion due to costs associated with the UAW strike.
The new contract with UAW will raise labor costs significantly. GM is also retracting its near-term targets for electric vehicles due to slower-than-expected demand.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings indicates year-over-year growth of 34.2% and 74.7%, respectively. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
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General Motors (GM) to Dismiss 1,300 Workers in Michigan

Reportedly, General Motors Company’s GM Cruise will reduce its workforce by 24%, mainly in commercial operations and related corporate functions. Before announcing the layoff, Cruise had 3,800 employees. The affected employees will receive their pay checks till Feb 12, 2023. They will also receive an additional eight weeks of salary plus tenure-based severance.
Cruise recently dismissed nine key leaders due to an accident that took place on Oct 2, 2023. The accident involved a Cruise self-driving car that dragged a pedestrian 20 feet after being struck by a vehicle.Per a memo seen by Reuters, new leadership is crucial for the company to regain trust and operate with the highest standards. After the accident, California suspended the driverless testing permit of Cruise robotaxi unit.
Last month, GM announced to cut costs at Cruise, which lost over $700 million in the third quarter and $8 billion since 2016.
Per CNBC, Cruise aims to work on a fully driverless L4 service. It plans to relaunch ride-hailing in one city before expanding.
In August, robotaxi received approval for round-the-clock service in San Francisco. Since then, it has been called into question for safety concerns. After the accident, the California Department of Motor Vehicles asked Cruise to remove its driverless cars from the roads and called them a risk to the public. Also, the National Highway Traffic Safety Administration started an investigation into pedestrian risks at Cruise.
Per a California agency, Cruise could face $1.5 million in fines and additional sanctions over its failure to disclose accident details.
In October, Cruise announced a reorganization, more oversight from General Motors, an independent safety expert and an expanded probe into Cruise’s tech and safety systems by Exponent.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SARNLSYand BYD Company LimitedBYDDY, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
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General Motors (GM) Cruise to Lay off 24% of Its Workforce

Per reports, Ford Motor Company F has reduced its planned production target of F-150 Lightning to half for 2024. In light of slowing demand, the automaker took a step back after significantly increasing its plant capacity for electric vehicles (“EVs”) this year.
Per a memo to a dealer, first reported by Automotive News, Ford plans to bring down its average weekly production volume at Rouge Electric Vehicle Center in Dearborn, MI, to 1,600 trucks, down from the current production volume of 3,200 per week.
During the third quarter’searnings call Ford’s executives shared plans to cancel or delay nearly $12 billion in EV investments due to softening demand for premium vehicles. Year-to-date, the company has lost almost $3.1 billion on EV spending and anticipates losing a total of $4 billion this year.
After receiving 200 thousand reservations for the F-150 Lightning in January 2022, Ford announced it would double its production capacity to 150 thousand units per year by mid-2023. To achieve its production target, the automaker idled its Rouge Electric Vehicle Center in early 2023.
However, the demand for EVs has been slower than anticipated due to higher prices and interest rates. Year-to-date, Ford has sold a total of 20,365 trucks, up from 13,258 sold in the corresponding period of 2022. The growth in demand lags far behind the expectations of automakers, which compelled them to reduce investments in EVs.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased 32 cents and 11 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
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Ford (F) Trims F-150 Lightning Production Target for 2024

Ford Motor Company F provided a full-year 2023 guidance for operating results after withdrawing it amid the United Automobile Workers’ (“UAW”) strike. It now expects full-year adjusted earnings before interest and taxes (EBIT) in the band of $10-$10.5 billion, down from the previously forecasted range of $11-$12 billion in July.
The automaker said that rising labor costs from new labor contracts would result in lower profits than previously estimated. It expects labor costs to increase by $8.8 billion over the life of the contract. Gross wages, accelerated wage progression and cost-of-living adjustments are believed to be the main contributors to rising costs.
The trimmed guidance for adjusted EBIT includes a $1.7 billion strike-related loss, of which $1.6 billion was incurred in the fourth quarter due to lower-than-anticipated production of high-margin trucks and sports utility vehicles (“SUVs”). The wholesale production was around 100,000 units lower than expected due to work stoppage.
Per John Lawler, chief financial officer of Ford, the cost impact is estimated to be around $900 per vehicle by 2028 or around 60 to 70 basis points of adjusted EBIT margin. Ford will strive to offset the cost through enhanced productivity and lower spending.
In the first nine months of 2023, Ford generated net income and adjusted EBIT of $4.9 billion and $9.4 billion, respectively. For full-year 2023, the automaker expects adjusted free cash flow in the range of $5-$5.5 billion.
Zacks Rank & Key Picks
F currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The consensus estimate for 2023 earnings per share (EPS) has increased 2 cents in the past 30 days. The consensus mark for 2024 EPS has increased 11 cents in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The bottom-line estimate for 2023 and 2024 has increased 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The bottom-line estimate for 2023 and 2024 has increased 62 cents and 57 cents, respectively, in the past 60 days.
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Ford (F) Updates Outlook After Ratification of Labor Contract

General Motors GM reinstated its earnings guidance for the full year of 2023. The automaker also announced a $10 billion accelerated share repurchase (“ASR”) program and unveiled its plan to increase its common stock dividend by 33%, starting January 2024.
GM had raised its guidance for full-year 2023 twice before withdrawing it in the third quarter due to the United Automobile Workers’ (UAW) strike. The automaker estimates $1.1 billion of adjusted EBIT impact pertaining to the lost production from UAW’s strike.
Here is a rundown of the reinstated outlook
The company reduced its guidance for net income attributable to stockholders to $9.1-$9.7 billion from the previous outlook of $9.3-$10.7 billion. It now expects adjusted EBIT of $11.7-$12.7 billion, down from the prior guidance of $12-$14 billion. It also reduced its adjusted diluted EPS range to $7.20-$7.70 from the previous range of $7.15-$8.15. It expects net automotive cash provided by operating activities in the range of $19.5-$21 billion compared with the prior range of $17.4-$20.4 billion. Adjusted automotive free cash flow is now expected between $10.5 billion and $11.5 billion compared with the previous guidance of $7-$9 billion.
Due to the new labor deal in the United States and Canada, the company expects costs to increase by $9.3 billion. To offset the costs to some extent, General Motors has narrowed its full-year 2023 capital spending guidance. It expects capital expenditure to range between $11 billion and $11.5 billion compared with the previous guidance of $11-$12 billion due to the retiming of certain product programs and effective capital investment.
GM is also addressing challenges associated with Cruise, its autonomous vehicle subsidiary, which incurred a loss of $1.9 billion in the first nine months of 2023. The company aims to minimize its spending on Cruise by hundreds of millions of dollars in 2024 compared with 2023.
Per the company’s ASR program, it will advance an aggregate of $10 billion to the executing banks, which include Bank of America, Goldman Sachs & Co., Barclays Bank PLC and Citibank. It will immediately receive and retire $6.8 billion worth of its common stock. General Motors said that the number of shares repurchased under the program will be determined upon final settlement and on average of the daily volume-weighted average prices of common stock during the program’s term.
Besides ASR, the company has $1.4 billion remaining under its share repurchase authorization for opportunistic share repurchases. It canceled a $6 billion revolving credit facility and plans to enter a new 364-day $3 billion credit facility.
GM has returned $4.2 billion in dividends and buybacks from January 2022 through the third quarter of 2023. It plans to increase its dividend to 12 cents, representing a rise of 33% from the previous quarter, beginning in 2024.
Zacks Rank & Key Picks
GM currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimate for 2023 has increased by 2 cents in the past 30 days. The EPS estimate for 2024 has increased by 11 cents in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimate for 2023 has increased by 62 cents in the past 60 days. The EPS estimate for 2024 has increased by a penny in the past 30 days.
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RENAULT SA UNSP/ADR

Price history and volume

Shares 360

Investment risk — medium

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