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Nielsen (NLSN) to Report Q1 Earnings: What's in the Cards?

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Nielsen Holdings is set to report first-quarter 2021 results on May 6.

For the quarter, the Zacks Consensus Estimate for revenues is pegged at $841.1 million, indicating a decline of 46.1% from the year-ago reported figure.

Further, the consensus estimate for earnings is pegged at 32 cents per share, unchanged over the past 30 days, suggesting an increase of 10.3% from the year-ago reported figure.

The company beat the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, missing in the remaining ones, delivering an average earnings surprise of 13.9%.

Nielsen Holdings Plc Price and EPS Surprise

 

Nielsen Holdings Plc Price and EPS Surprise

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

 

Let’s see how things are shaping up for this announcement.

Factors to Note

Nielsen’s consistent investment in its product portfolio and growing client adoption are expected to have aided top-line growth in first-quarter 2021. Moreover, accretive acquisitions are expected to have contributed handsomely to top-line growth in the to-be-reported quarter.

Additionally, an expanding partner base that includes the likes of VIZIO, DIRECTV and DISH is expected to have aided first-quarter 2021 results. Nielsen’s expanding connected TV footprint, with the addition of YouTube, YouTube TV and VIZIO, is also a key catalyst.

Nielsen expects year-over-year margin expansion in the first quarter. Improved operational efficiency is likely to have aided profitability. The company’s bottom line is expected to reflect benefits from the optimization plan (announced in July 2020).

However, Nielsen’s ongoing investments in technology and infrastructure remain risks for margin expansion.

What Our Model Indicates

Per the Zacks model, 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. But that’s not the case here.

Nielsen has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Fair Isaac (FICO - Free Report) has an Earnings ESP of +15.94% and is #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #2.

Lumentum (LITE - Free Report) has an Earnings ESP of +2.47% and is #3 Ranked.

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