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

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Nielsen Holdings Plc is scheduled to report first-quarter 2020 results on Apr 30.

For first-quarter 2020, the Zacks Consensus Estimate for revenues is pegged at $1.58 billion, indicating an improvement of 0.9% from the prior-year reported figure.

Further, the Zacks Consensus Estimate for earnings is pegged at 30 cents per share, suggesting a decline of 14.3% from the year-ago reported figure.

The company delivered a trailing four-quarter positive earnings surprise of 15.9%, on average.

Factors to Note

Nielsen’s strong product lines and continued investment in the addressable TV platform are likely to get reflected in first-quarter results. Moreover, the company’s strengthening presence in the advertising market is anticipated to have contributed to earnings in the quarter to be reported.

Additionally, its detailed product roadmaps are likely to have delivered greater transparency around monetization to customers through pervasive and consistent digital measurements in the first quarter.

Further, the company’s strengthening digital initiatives across the Media business remain a major positive. Its growing investments in this business in order to offer transparency and scalability are likely to have aided the company’s momentum across addressable television and target ads in the quarter under review.

Nielsen’s audience data and AI tools, which help customers in making performance-based decisions, are expected to have boosted the cross Media plan in the first quarter.

Moreover, the plan of unifying the company’s go-to-market strategy and product offerings is likely to have bolstered international presence in the to-be-reported quarter.

Furthermore, these endeavors are expected to have aided the performance of the company’s Television Audience Measurement during the first quarter.

Nielsen Connects’ strategic relationships with brick-and-mortar and online retailers are expected to have driven its performance in the quarter under review.

Moreover, its robust Connect partner network is likely to have sustained momentum across data and analytics companies in the to-be-reported quarter.

Additionally, the company’s retail collaboration programs are expected to have been a tailwind.

However, sluggish growth in emerging markets might have hurt its first-quarter performance. Further, ongoing investments in technology and infrastructure may have hampered margin expansion and profitability. Additionally, higher expenses are expected to get reflected in first-quarter results.

Nielsen Holdings Plc Price and EPS Surprise

 

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.

Although Nielsen currently carries a Zacks Rank #3, its Earnings ESP of -0.66% makes surprise prediction difficult.

Stocks to Consider

Here are some stocks that you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baidu, Inc. (BIDU - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank of 2.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.

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