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Nielsen (NLSN) to Report Q1 Earnings: What's in the Offing?

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Nielsen Holdings is set to report first-quarter 2019 results on Apr 30.

The company missed estimates in each of the trailing four quarters, recording average negative earnings surprise of 26%. In the last reported quarter, its earnings lagged the Zacks Consensus Estimate by 3 cents.

Fourth-quarter 2018 reported revenues came in at $1.658 billion, surpassing the Zacks Consensus Estimate of $1.64 billion.

The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $1.56 billion. Moreover, the consensus mark for earnings has remained steady at 31 cents per share over the past 60 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 Headset and Deloitte, among others.

During the quarter, Nielsen announced a strategic alliance with Deloitte. The deal provides real-time market intelligence for the cannabis industry and allows clients to monitor the competitive landscape, expanding its reach in Canada.

Its measurement services continue to gain traction among TV and media companies. This is likely to accelerate adoption rate, thereby increasing its Watch segment revenues in the quarter to be reported.

However, 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.

Further, its ongoing investments in technology and infrastructure remain risks for margin expansion and profitability.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Currently, Nielsen has a Zacks Rank #5 and an Earnings ESP of +9.17%, which makes surprise prediction difficult. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Nielsen Holdings Plc Price and EPS Surprise

 

Nielsen Holdings Plc Price and EPS Surprise | Nielsen Holdings Plc Quote

Stocks to Consider

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Juniper Networks, Inc. (JNPR - Free Report) has an Earnings ESP of +10.00% and holds a Zacks Rank #2.

Square, Inc. (SQ - Free Report) has an Earnings ESP of +5.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Triton International Limited has an Earnings ESP of +2.51% and holds a Zacks Rank #3.

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