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Nielsen has reported fourth-quarter 2021 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate by 27.8% and grew 43.8% year over year.
Total revenues were $894 million, which increased 2.5% on a reported basis and 2.9% on a constant-currency basis from the year-ago quarter. Further, it rose 4.7% from the year-ago quarter on an organic constant-currency basis.
However, the figure missed the consensus mark of $896.3 million.
Year-over-year revenue growth was driven by solid momentum across the company’s Measurement Solutions.
However, the sluggish performances of Impact Marketing and Gracenote Content Solutions remained concerning.
Notably, Nielsen renamed its product categories — Audience Measurement and Outcomes/ Content as Measurement Solutions and Impact/Content (Impact Marketing Solutions/Gracenote Content Solutions), respectively.
Nielsen Holdings Plc Price, Consensus and EPS Surprise
In the fourth quarter, Measurement Solutions’ revenues rose 3.7% year over year to $647 million (72.4% of total revenues). This was primarily attributed to the strength across national and digital measurement products. Also, solid momentum across local products contributed well.
Impact/Content revenues decreased 0.4% year over year to $247 million (27.6% of the total revenues) due to a timing-related decline in Content. Nevertheless, the figure grew 3.4% from the prior-year quarter on an organic constant-currency basis, driven by the improving Sports business and robust growing short-cycle revenues, which led to growth in Impact revenues.
Operating Details
Adjusted EBITDA decreased 7.6% year over year to $351 million. The adjusted EBITDA margin contracted 432 basis points (bps) to 39.3% in the reported quarter.
Nielsen’s selling, general and administrative expenses were $249 million, increasing 44.8% year over year. As a percentage of revenues, the figure expanded 810 bps to 27.8%
The operating income was $178 million, which grew 10.6% year over year. As a percentage of revenues, the figure expanded 140 bps year over year to 19.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the cash and cash equivalent balance was $380 million, down from $542 million as of Sep 30, 2021.
At the end of the reported quarter, gross debt and net debt (gross debt minus cash and cash equivalents) were $5.6 billion and $5.2 billion, respectively. Notably, gross debt and net debt were $5.8 billion and $5.3 billion at the end of the previous quarter, respectively.
The company generated $227 million of cash from operations compared with $271 million in the previous quarter.
Its free cash flow was $133 million in the fourth quarter.
2022 Guidance
For 2022, the company expects revenue growth of 3.5-4.5% on a constant-currency basis. Organic revenue growth is anticipated between 4% and 5%. The Zacks Consensus Estimate for 2022 revenues is pegged at $3.64 billion.
The company expects adjusted earnings between $1.81 and $1.91 per share. The consensus mark for the same is pegged at $1.75.
The adjusted EBITDA margin is expected to be 42.6-42.9%.
Free cash flow is expected between $650 million and $700 million.
Allied Motion is slated to report fourth-quarter 2021 results on Mar 9. The company has gained 3.9% over a year. The long-term earnings growth rate for AMOT is currently projected at 10%.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. The company has gained 20.1% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
inTest is slated to report fourth-quarter 2021 results on Mar 4. It has gained 28% over a year. The long-term earnings growth rate for INTT is currently projected at 10%.
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Nielsen (NLSN) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Nielsen has reported fourth-quarter 2021 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate by 27.8% and grew 43.8% year over year.
Total revenues were $894 million, which increased 2.5% on a reported basis and 2.9% on a constant-currency basis from the year-ago quarter. Further, it rose 4.7% from the year-ago quarter on an organic constant-currency basis.
However, the figure missed the consensus mark of $896.3 million.
Year-over-year revenue growth was driven by solid momentum across the company’s Measurement Solutions.
However, the sluggish performances of Impact Marketing and Gracenote Content Solutions remained concerning.
Notably, Nielsen renamed its product categories — Audience Measurement and Outcomes/ Content as Measurement Solutions and Impact/Content (Impact Marketing Solutions/Gracenote Content Solutions), respectively.
Nielsen Holdings Plc Price, Consensus and EPS Surprise
Nielsen Holdings Plc price-consensus-eps-surprise-chart | Nielsen Holdings Plc Quote
Top-Line Detail
In the fourth quarter, Measurement Solutions’ revenues rose 3.7% year over year to $647 million (72.4% of total revenues). This was primarily attributed to the strength across national and digital measurement products. Also, solid momentum across local products contributed well.
Impact/Content revenues decreased 0.4% year over year to $247 million (27.6% of the total revenues) due to a timing-related decline in Content. Nevertheless, the figure grew 3.4% from the prior-year quarter on an organic constant-currency basis, driven by the improving Sports business and robust growing short-cycle revenues, which led to growth in Impact revenues.
Operating Details
Adjusted EBITDA decreased 7.6% year over year to $351 million. The adjusted EBITDA margin contracted 432 basis points (bps) to 39.3% in the reported quarter.
Nielsen’s selling, general and administrative expenses were $249 million, increasing 44.8% year over year. As a percentage of revenues, the figure expanded 810 bps to 27.8%
The operating income was $178 million, which grew 10.6% year over year. As a percentage of revenues, the figure expanded 140 bps year over year to 19.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, the cash and cash equivalent balance was $380 million, down from $542 million as of Sep 30, 2021.
At the end of the reported quarter, gross debt and net debt (gross debt minus cash and cash equivalents) were $5.6 billion and $5.2 billion, respectively. Notably, gross debt and net debt were $5.8 billion and $5.3 billion at the end of the previous quarter, respectively.
The company generated $227 million of cash from operations compared with $271 million in the previous quarter.
Its free cash flow was $133 million in the fourth quarter.
2022 Guidance
For 2022, the company expects revenue growth of 3.5-4.5% on a constant-currency basis. Organic revenue growth is anticipated between 4% and 5%. The Zacks Consensus Estimate for 2022 revenues is pegged at $3.64 billion.
The company expects adjusted earnings between $1.81 and $1.91 per share. The consensus mark for the same is pegged at $1.75.
The adjusted EBITDA margin is expected to be 42.6-42.9%.
Free cash flow is expected between $650 million and $700 million.
Zacks Rank & Stocks to Consider
Currently, Nielsen has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Allied Motion Technologies , Broadcom (AVGO - Free Report) and inTest (INTT - Free Report) . While Allied Motion currently sports a Zacks Rank #1 (Strong Buy), Broadcom and inTest carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allied Motion is slated to report fourth-quarter 2021 results on Mar 9. The company has gained 3.9% over a year. The long-term earnings growth rate for AMOT is currently projected at 10%.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. The company has gained 20.1% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
inTest is slated to report fourth-quarter 2021 results on Mar 4. It has gained 28% over a year. The long-term earnings growth rate for INTT is currently projected at 10%.