Nielsen Holdings plc is set to report fourth-quarter 2017 results on Feb 8. Last quarter, the company delivered a negative earnings surprise of 8.82%.
Notably, Nielsen missed the Zacks Consensus Estimate in each of the trailing four quarters, with an average negative surprise of 28.03%.
Also, shares of Nielsen have lost 10.7% year to date, underperforming the industry’s 25.6% rally.
Let’s see how things are shaping up for this announcement.
Watch Segment Strength to Drive Revenues
In the third quarter, Watch business revenues of $838 million contributed 51% to the total top line and were up 10.1% on a year-over-year basis. This figure is expected to increase in the to-be-reported quarter driven by continued strength in Audience Measurement and Marketing Effectiveness. The Zacks Consensus Estimate for Watch revenues is currently pegged at $889 million.
Partnerships & Agreements to Boost Results
Nielsen has been partnering with big companies to extend its TV ratings service beyond the Nielsen Local TV Ratings Service. Recently the company entered into a partnership with Clypd, a leading sales side platform for television advertising. The partnership enables advertisers, agencies and publishers to transact using consistently defined audience segments on linier television. Also, the acquisition of Gracenote is likely to bring new capabilities to linier TV ads in partnership with two leading interactive TV advertising providers, Connekt and Ensequence. These partnerships will help Nielsen to expand its client base and boost its revenues in the to-be-reported quarter.
Weakness in the Buy Segment Could Hurt Results
In the third quarter, Buy business revenues of $803 million declined 0.7% year over year and 2.1% on a constant-currency basis. The figure could decrease in the fourth quarter due to challenging consumer goods environment in the U.S. market.
Why a Likely Positive Surprise?
Moreover, our proven model shows that Nielsen is likely to beat earnings due to the favorable combination of a Zacks Rank #3 (Hold) and +1.15% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1, 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +0.57% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries, Inc. (AEIS - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
Advanced Micro Devices, Inc. (AMD - Free Report) , with an Earnings ESP of +8.72% and a Zacks Rank #3.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Nielsen Holdings plc is set to report fourth-quarter 2017 results on Feb 8. Last quarter, the company delivered a negative earnings surprise of 8.82%.
Notably, Nielsen missed the Zacks Consensus Estimate in each of the trailing four quarters, with an average negative surprise of 28.03%.
Also, shares of Nielsen have lost 10.7% year to date, underperforming the industry’s 25.6% rally.
Let’s see how things are shaping up for this announcement.
Watch Segment Strength to Drive Revenues
In the third quarter, Watch business revenues of $838 million contributed 51% to the total top line and were up 10.1% on a year-over-year basis. This figure is expected to increase in the to-be-reported quarter driven by continued strength in Audience Measurement and Marketing Effectiveness. The Zacks Consensus Estimate for Watch revenues is currently pegged at $889 million.
Partnerships & Agreements to Boost Results
Nielsen has been partnering with big companies to extend its TV ratings service beyond the Nielsen Local TV Ratings Service. Recently the company entered into a partnership with Clypd, a leading sales side platform for television advertising. The partnership enables advertisers, agencies and publishers to transact using consistently defined audience segments on linier television. Also, the acquisition of Gracenote is likely to bring new capabilities to linier TV ads in partnership with two leading interactive TV advertising providers, Connekt and Ensequence. These partnerships will help Nielsen to expand its client base and boost its revenues in the to-be-reported quarter.
Weakness in the Buy Segment Could Hurt Results
In the third quarter, Buy business revenues of $803 million declined 0.7% year over year and 2.1% on a constant-currency basis. The figure could decrease in the fourth quarter due to challenging consumer goods environment in the U.S. market.
Why a Likely Positive Surprise?
Moreover, our proven model shows that Nielsen is likely to beat earnings due to the favorable combination of a Zacks Rank #3 (Hold) and +1.15% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1, 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +0.57% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries, Inc. (AEIS - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2.
Advanced Micro Devices, Inc. (AMD - Free Report) , with an Earnings ESP of +8.72% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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