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Nielsen (NLSN) Surpasses Q2 Earnings and Revenue Estimates

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Nielsen Holdings (NLSN - Free Report) has reported second-quarter 2021 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate by 13.2% and grew 22.9% year over year.

Total revenues were $861 million, up 6.2% year over year. The figure surpassed the consensus mark of $855.1 million. On a constant-currency (cc) basis, revenues increased 4.5% year over year.

Solid momentum across Audience Measurement as well as Outcomes and Content drove top-line growth in the reported quarter.

Top-Line Detail

In the second quarter, Audience Measurement revenues rose 4.3% year over year to $629 million (73.1% of total revenues). This was primarily attributed to strength across the digital measurement category.

Outcomes and Content revenues increased 11.5% to $232 million (26.9% of the total revenues), which was driven by the improving Sports business and robust growth in Content.

Nielsen Holdings Plc Price, Consensus and EPS Surprise

 

Nielsen Holdings Plc Price, Consensus and EPS Surprise

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

Operating Details

Adjusted EBITDA increased 11.8% year over year to $370 million. Adjusted EBITDA margin expanded 216 basis points (bps) to 43% in the reported quarter.

Nielsen’s selling, general and administrative expenses were $218 million, increasing 26% year over year.

Operating income was $219 million, up 84% year over year.

Balance Sheet & Cash Flow

As of Jun 30, 2021, the cash and cash equivalent balance was $410 million, down from $1.19 billion on Mar 31, 2021.

As of Jun 30, 2021, gross debt was $5.9 billion, resulting in net debt (gross debt minus cash and cash equivalents) of $5.5 billion.

The company generated $213 million in cash from operations in the reported quarter compared to $45 million in cash used in operations in the previous quarter.

Its free cash flow was $190 million in the second quarter.

2021 Guidance

For 2021, the company revised the revenue growth guidance from 2-3% to 2.5-3%. Organic revenue growth guidance was also revised from 3.5-4.5% to 4-4.5%. The Zacks Consensus Estimate for 2021 revenues is pegged at $3.49 billion.

The company raised the adjusted earnings guidance from $1.47-$1.58 to $1.54-$1.61per share. The consensus mark for the same is pegged at $1.55 per share.

Nielsen revised the guidance for Adjusted EBITDA from$1.470-$1.490 billion to $1.475-$1.490 billion. The guidance for adjusted EBITDA margin has been revised from42.25-42.5% to 42.3-42.6%.

Zacks Rank and Stocks to Consider

Currently, Nielsen carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are KLA Corporation (KLAC - Free Report) , Carrier Global Corporation (CARR - Free Report) and Trimble Inc. (TRMB - Free Report) . Thethree companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
    
The long-term earnings growth rates of KLA, Carrier Global and Trimble are pegged at 14.03%, 13.38% and 10.1%, respectively.