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Nielsen (NLSN) to Report Q3 Earnings: What's in the Cards?

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Nielsen Holdings Plc (NLSN - Free Report) is scheduled to report third-quarter 2021 results on Oct 28.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $869.06 million, indicating a decline of 44.4% from the year-ago reported figure.

Further, the consensus estimate for earnings is pegged at 36 cents per share, suggesting a decline of 16.3% from the year-ago reported figure.

The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, delivering an average surprise of 19.4%.

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

Nielsen’s strength across three key solutions — namely Audience Measurement, Audience Outcomes and Gracenote Content Services — is likely to have continued aiding its third-quarter performance.

The growing adoption of content solutions by publishers and multichannel video programming distributors might have benefited Gracenote in the to-be-reported quarter.

The company’s product-led strategy, introduction of new services and growing renewals are expected to have benefited top-line growth in the quarter under review.

During the third quarter, Nielsen and Meredith Corp. renewed a multi-year agreement for Nielsen Local TV ratings. Per the agreement, Nielsen’s unique suite of measurement services will be leveraged for establishing a cross-platform currency for Meredith’s commercial strategies. This is expected to get reflected in the to-be-reported quarter’s results.

In addition, the company acquired a Paris-based TV attribution provider and ad monitoring company named TVTY to expand its TV Attribution and Ad Intel services. This might have been a tailwind in the third quarter.

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

During the quarter, the company unveiled a cookieless approach for audience and outcomes measurement. This might have supported its quarterly performance.

During the quarter under review, Nielsen started to place 3,000 new Portable People Meter Wearables to continue its efforts of modernizing its panels and improving panelist experience. This is anticipated to get reflected in the upcoming quarterly results.

Yet, 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.

Trimble (TRMB - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank of 2, at present.

PerkinElmer (PKI - Free Report) has an Earnings ESP of +5.20% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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