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What's in the Offing for Nielsen (NLSN) in Q2 Earnings?
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Nielsen Holdings Plc is scheduled to report second-quarter 2018 results on Jul 26.
The company missed the Zacks Consensus Estimate in all the trailing four quarters, recording an average negative earnings surprise of 20.58%.
In the last reported quarter, Nielsen reported earnings of 20 cents per share, flat with the year-ago figure.
Revenues increased 5.5% year over year to $1.610 billion. The increase was driven by continued strength in the company’s Watch segment and growth in the emerging markets, partially offset by weakness in the U.S. Buy segment.
Also, shares of Nielsen have lost 25% in the past 12 months against the industry’s 25.8% rally.
Let’s see how things are shaping up for the quarter to be reported.
Robust Product Portfolio to Boost Results
Nielsen’s regular investments in innovative technologies bode well for product portfolio expansion.
Last month, Nielsen acquired a new client called Sony Crackle, which is a unit of Sony Pictures Television, for its Marketing Cloud platform.
Further, Nielsen’s Gracenote rolled out a new TV metadata and electronic program guide solution to enhance TV viewers’ experience by assisting smart TV, as well as streaming device manufacturers to make linear and on-demand content more searchable and discoverable.
These endeavors are likely to benefit the company’s second-quarter results.
Strategic Partnerships Remain Positive
Strategic partnerships have been shaping Nielsen’s growth trajectory over the past few years.
Last month, Nielsen teamed up with a Comcast subsidiary, FreeWheel, to offer a better understanding to advertisers about the total television marketplace by extending measurement to over-the-top inventory and addressable set-top box video on demand.
In May, Nielsen collaborated with CBS to offer addressable advertising by delivering Dynamic Ad Insertion (DAI) in live linear national broadcast television.
These partnerships will continue to aid the company’s revenues.
We believe that the above-mentioned moves undertaken by the company coupled with improving its clientelewill boost top-line growth in the soon-to-be reported quarter.
Outlook
For the second quarter, the Zacks Consensus Estimate for Buy and Watch revenues is pegged at $834 million and $867 million, respectively. In addition, the Zacks Consensus Estimate for revenues from the developed and emerging markets is pegged at 497 million and $327 million, respectively.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Nielsen’s Zacks Rank #3 increases the odd of an earnings beat, its 0.00% Earnings ESP makes surprise prediction difficult.
Here are a couple of stocks that you may want to consider, as our model shows that thesehave the right combination of elements to post a positive earnings surprise in the quarter to be reported.
Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #2.
Lockheed Martin Corporation (LMT - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What's in the Offing for Nielsen (NLSN) in Q2 Earnings?
Nielsen Holdings Plc is scheduled to report second-quarter 2018 results on Jul 26.
The company missed the Zacks Consensus Estimate in all the trailing four quarters, recording an average negative earnings surprise of 20.58%.
In the last reported quarter, Nielsen reported earnings of 20 cents per share, flat with the year-ago figure.
Revenues increased 5.5% year over year to $1.610 billion. The increase was driven by continued strength in the company’s Watch segment and growth in the emerging markets, partially offset by weakness in the U.S. Buy segment.
Also, shares of Nielsen have lost 25% in the past 12 months against the industry’s 25.8% rally.
Let’s see how things are shaping up for the quarter to be reported.
Robust Product Portfolio to Boost Results
Nielsen’s regular investments in innovative technologies bode well for product portfolio expansion.
Last month, Nielsen acquired a new client called Sony Crackle, which is a unit of Sony Pictures Television, for its Marketing Cloud platform.
Further, Nielsen’s Gracenote rolled out a new TV metadata and electronic program guide solution to enhance TV viewers’ experience by assisting smart TV, as well as streaming device manufacturers to make linear and on-demand content more searchable and discoverable.
These endeavors are likely to benefit the company’s second-quarter results.
Strategic Partnerships Remain Positive
Strategic partnerships have been shaping Nielsen’s growth trajectory over the past few years.
Last month, Nielsen teamed up with a Comcast subsidiary, FreeWheel, to offer a better understanding to advertisers about the total television marketplace by extending measurement to over-the-top inventory and addressable set-top box video on demand.
In May, Nielsen collaborated with CBS to offer addressable advertising by delivering Dynamic Ad Insertion (DAI) in live linear national broadcast television.
These partnerships will continue to aid the company’s revenues.
We believe that the above-mentioned moves undertaken by the company coupled with improving its clientelewill boost top-line growth in the soon-to-be reported quarter.
Outlook
For the second quarter, the Zacks Consensus Estimate for Buy and Watch revenues is pegged at $834 million and $867 million, respectively. In addition, the Zacks Consensus Estimate for revenues from the developed and emerging markets is pegged at 497 million and $327 million, respectively.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Nielsen’s Zacks Rank #3 increases the odd of an earnings beat, its 0.00% Earnings ESP makes surprise prediction difficult.
Nielsen Holdings Plc Price and EPS Surprise
Nielsen Holdings Plc Price and EPS Surprise | Nielsen Holdings Plc Quote
Stocks to Consider
Here are a couple of stocks that you may want to consider, as our model shows that thesehave the right combination of elements to post a positive earnings surprise in the quarter to be reported.
Twitter has an Earnings ESP of +7.06% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #2.
Lockheed Martin Corporation (LMT - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>