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

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Nielsen Holdings Plc is scheduled to report second-quarter 2021 results on Jul 29.

For the quarter, the Zacks Consensus Estimate for revenues is pegged at $853.6 million, indicating a decline of 42.9% from the year-ago reported figure.

Further, the consensus estimate for earnings is pegged at 38 cents per share, suggesting a decline of 7.3% from the year-ago reported figure.

The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, delivering an average of 26.5%.

Nielsen Holdings Plc Price and EPS Surprise

Nielsen Holdings Plc Price and EPS Surprise

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

Key Factors to Note

Strength across three solutions, namely Audience Measurement, Audience Outcomes and Gracenote Content Services, is likely to be reflected in second-quarter results.

The company’s product-led strategy, introduction of new services and growing clientele are expected to have continued aiding top-line growth in second-quarter 2021.

Growing adoption of its content solutions by publishers and multichannel video programming distributors is likely to have benefited Gracenote. Also, Gracenote broadened international video metadata coverage in the second quarter to include Poland for serving the country’s healthy appetite for entertainment content. This might have aided Gracenote’s quarterly performance.

During the second quarter, Nielsen introduced Podcast Ad Effectiveness+ and Nielsen Market Lift. Also, it collaborated with Boston Globe Media Partners, LLC to launch a custom and proprietary cross-platform study. These are expected to get reflected in the to-be-reported quarter’s results.

Further, growing momentum of its single cross-media currency, Nielsen ONE, is likely to have remained a major positive during the quarter under review.

During the second quarter, Nielsen collaborated with IHS Markit to incorporate automotive data of Polk Automotive Solutions provided by the latter into its audience and outcomes measurement solutions.

Also, it expanded its partnership with Twitter to help the latter’s video advertisers do more pre and post campaign planning, maximize ad effectiveness as well as provide fast campaign results.

These are anticipated to have been tailwinds in the soon to-be-reported quarter.

However, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results. Also, mounting competition in the digital space is likely to have remained a threat to its market position.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Agilent Technologies (A - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 2, at present.

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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