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Nielsen (NLSN) Q3 Earnings: Is a Disappointment in Store?
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Nielsen Holdings is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average negative earnings surprise of 26.8%, missing estimates in each. In the last reported quarter (second-quarter 2018), earnings lagged the Zacks Consensus Estimate by a massive 31 cents.
Moreover, Nielsen’s top line has missed the consensus mark in all of the trailing four quarters. In second-quarter 2018, reported revenues came in at $1.65 billion, lagging the Zacks Consensus Estimate of $1.71 billion and decreasing 0.7% (on a constant currency basis) from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.58 billion, which reflects year-over-year decline of almost 4%. Moreover, the consensus mark for earnings has been steady at 53 cents over the last seven days.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
Nielsen is strengthening its presence in the advertising market through strategic partnerships with the likes of J.D. Power, Comcast’s FreeWheel division and CBS, among others. Moreover, the company’s ongoing investments in innovative technologies are driving portfolio expansion.
During the quarter, the company unveiled Nielsen Auto Cloud in collaboration with J.D. Power. The solution will assist the auto marketers to focus efficiently on the target car buyers across television and other media platforms, thereby improving their return on investments (ROI).
Moreover, Nielsen’s premium audience segment was integrated into Snapchat's ad buying platform in the last quarter. This integration now allows advertisers and agencies to buy inventory on Snapchat, using Nielsen-branded audience segment through the Nielsen Marketing Cloud.
During the quarter, Spotify (SPOT - Free Report) and Nielsen also expanded their relationship to include the adoption of Nielsen Brand Effect across Spotify in the United States, Germany, Canada, Mexico, the U.K., Spain, France, the Netherlands, Japan and Australia.
Nielsen also entered into a multi-year agreement with Meredith Corporation, per which the latter will be leveraging the former’s TV ratings across its TV stations and markets.
Toward the end of the last quarter, DISH Network selected Nielsen to provide digital measurement on Sling TV and data segments for addressable advertising across both DISH TV and Sling TV inventory.
Nevertheless, weakness in the U.S. Buy segment and sluggish growth in emerging markets are expected to hurt top-line growth in the to-be-reported quarter. The company is expected to suffer from weakness in multinational client spending in markets like Southeast Asia and China.
Also, mounting competition in the digital space poses a major threat to Nielsen’s market position.
Notably, in an expanded strategic review of the business, Nielsen is now exploring options to divest the entire business. The company had previously announced strategic review of its Buy segment.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Nielsen has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Nielsen (NLSN) Q3 Earnings: Is a Disappointment in Store?
Nielsen Holdings is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average negative earnings surprise of 26.8%, missing estimates in each. In the last reported quarter (second-quarter 2018), earnings lagged the Zacks Consensus Estimate by a massive 31 cents.
Moreover, Nielsen’s top line has missed the consensus mark in all of the trailing four quarters. In second-quarter 2018, reported revenues came in at $1.65 billion, lagging the Zacks Consensus Estimate of $1.71 billion and decreasing 0.7% (on a constant currency basis) from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.58 billion, which reflects year-over-year decline of almost 4%. Moreover, the consensus mark for earnings has been steady at 53 cents over the last seven days.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
Nielsen is strengthening its presence in the advertising market through strategic partnerships with the likes of J.D. Power, Comcast’s FreeWheel division and CBS, among others. Moreover, the company’s ongoing investments in innovative technologies are driving portfolio expansion.
Nielsen Holdings Plc Price and EPS Surprise
Nielsen Holdings Plc Price and EPS Surprise | Nielsen Holdings Plc Quote
During the quarter, the company unveiled Nielsen Auto Cloud in collaboration with J.D. Power. The solution will assist the auto marketers to focus efficiently on the target car buyers across television and other media platforms, thereby improving their return on investments (ROI).
Moreover, Nielsen’s premium audience segment was integrated into Snapchat's ad buying platform in the last quarter. This integration now allows advertisers and agencies to buy inventory on Snapchat, using Nielsen-branded audience segment through the Nielsen Marketing Cloud.
During the quarter, Spotify (SPOT - Free Report) and Nielsen also expanded their relationship to include the adoption of Nielsen Brand Effect across Spotify in the United States, Germany, Canada, Mexico, the U.K., Spain, France, the Netherlands, Japan and Australia.
Nielsen also entered into a multi-year agreement with Meredith Corporation, per which the latter will be leveraging the former’s TV ratings across its TV stations and markets.
Toward the end of the last quarter, DISH Network selected Nielsen to provide digital measurement on Sling TV and data segments for addressable advertising across both DISH TV and Sling TV inventory.
Nevertheless, weakness in the U.S. Buy segment and sluggish growth in emerging markets are expected to hurt top-line growth in the to-be-reported quarter. The company is expected to suffer from weakness in multinational client spending in markets like Southeast Asia and China.
Also, mounting competition in the digital space poses a major threat to Nielsen’s market position.
Notably, in an expanded strategic review of the business, Nielsen is now exploring options to divest the entire business. The company had previously announced strategic review of its Buy segment.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Nielsen has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
Cardtronics has an Earnings ESP of +3.20% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is set to report on Nov 1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>