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Nielsen (NLSN) to Report Q2 Earnings: What's in the Offing?

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Nielsen Holdings Plc is scheduled to report second-quarter 2020 results on Aug 5.

For second-quarter 2020, the Zacks Consensus Estimate for revenues is pegged at $1.48 billion, indicating a decline of 8.8% from the prior-year reported figure.

Further, the Zacks Consensus Estimate for earnings is pegged at 29 cents per share, suggesting a decline of 45.3% from the year-ago reported figure.

The company beat the Zacks Consensus Estimate for earnings in three out of the trailing four quarters, delivering an average surprise of 11.8%.

Nielsen Holdings Plc Price and EPS Surprise

Nielsen Holdings Plc Price and EPS Surprise

Nielsen Holdings Plc price-eps-surprise | Nielsen Holdings Plc Quote

Factors to Note

Nielsen’s strong product lines and persistent investments in the addressable TV platform are likely to get reflected in second-quarter results. Moreover, the company’s strengthening presence in the advertising market is anticipated to have contributed to earnings in the quarter to be reported.

Additionally, its detailed product roadmaps are likely to have delivered greater transparency around monetization to customers through pervasive and consistent digital measurements in the second quarter.

Further, the company’s strengthening digital initiatives across the Media business have been a major positive. Its growing investments in this business in order to offer transparency and scalability are likely to have aided the company’s momentum across addressable television and target ads in the quarter under review.

Nielsen’s audience data and AI tools, which help customers in making performance-based decisions, are expected to have boosted the cross Media plan in the second quarter.

Moreover, the plan of unifying the company’s go-to-market strategy and product offerings is likely to have bolstered international presence in the to-be-reported quarter.

Furthermore, these endeavors are expected to have aided the performance of its Television Audience Measurement during the second quarter.

Nielsen Connects’ strategic relationships with brick-and-mortar and online retailers are expected to have driven its performance in the quarter under review.

Moreover, robust Connect partner network is likely to have sustained momentum across data and analytics companies in the to-be-reported quarter.

However, sluggish growth in emerging markets might have hurt the company’s second-quarter performance. Further, ongoing investments in technology and infrastructure may have hampered margin expansion and profitability. Additionally, higher expenses are expected to get reflected in second-quarter results.

What Our Model Says

Our proven model predicts an earnings beat for Nielsen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Nielsen currently carries a Zacks Rank #3 and its Earnings ESP is +17.24%.

Other Stocks to Consider

Here are some other stocks that you may also consider, as our proven model shows that these too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

AMETEK, Inc. (AME - Free Report) has an Earnings ESP of +3.96% and holds a Zacks Rank of 2.

GoPro, Inc. (GPRO - Free Report) has an Earnings ESP of +43.66% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

JD.com, Inc. (JD - Free Report) has an Earnings ESP of +13.79% and a Zacks Rank #1.

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