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Will Q2 Earnings Hold a Surprise for Nielsen (NLSN) Stock?
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Nielsen Holdings N.V. is set to report second-quarter 2016 results on Jul 26. Last quarter, the company posted a positive earnings surprise of 2.08%. Moreover, Nielsen surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 3.47%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Nielsen is an information and measurement company which offers media and marketing information on what consumers watch and buy on a global and local basis. The company reported decent first-quarter results with both earnings and revenues matching the Zacks Consensus Estimate. Also, revenues were up 2.0% year over year due to solid performance by its Buy and Watch businesses.
Regular dividend payment and share repurchase program reflect Nielsen’s financial strength and commitment to return value to shareholders. Also, the company's new products are doing well and should drive revenues in the upcoming quarter.
However, continued investments in technology and infrastructure could weigh on margins and profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Nielsen is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 69 cents. Therefore, the Earnings ESP for Nielsen is 0.00%.
Zacks Rank: Nielsen has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some stocks which you may consider instead, as our model shows they have the right combination of elements to post an earnings beat this quarter:
CalAtlantic Group, Inc. has an Earnings ESP of +9.21% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 28.
Bristol-Myers Squibb Company (BMY - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #1. The company’s second-quarter earnings release date is Jul 28.
CoreSite Realty Corporation (COR - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #1. The company is slated to report second-quarter earnings results before the market opens on Jul 28.
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Will Q2 Earnings Hold a Surprise for Nielsen (NLSN) Stock?
Nielsen Holdings N.V. is set to report second-quarter 2016 results on Jul 26. Last quarter, the company posted a positive earnings surprise of 2.08%. Moreover, Nielsen surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 3.47%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Nielsen is an information and measurement company which offers media and marketing information on what consumers watch and buy on a global and local basis. The company reported decent first-quarter results with both earnings and revenues matching the Zacks Consensus Estimate. Also, revenues were up 2.0% year over year due to solid performance by its Buy and Watch businesses.
Regular dividend payment and share repurchase program reflect Nielsen’s financial strength and commitment to return value to shareholders. Also, the company's new products are doing well and should drive revenues in the upcoming quarter.
However, continued investments in technology and infrastructure could weigh on margins and profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Nielsen is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 69 cents. Therefore, the Earnings ESP for Nielsen is 0.00%.
Zacks Rank: Nielsen has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
NIELSEN HOLDNGS Price and EPS Surprise
NIELSEN HOLDNGS Price and EPS Surprise | NIELSEN HOLDNGS Quote
Stock to Consider
Here are some stocks which you may consider instead, as our model shows they have the right combination of elements to post an earnings beat this quarter:
CalAtlantic Group, Inc. has an Earnings ESP of +9.21% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 28.
Bristol-Myers Squibb Company (BMY - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #1. The company’s second-quarter earnings release date is Jul 28.
CoreSite Realty Corporation (COR - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #1. The company is slated to report second-quarter earnings results before the market opens on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>