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Nielsen (NLSN) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research

Nielsen Holdings Plc NLSN is scheduled to report fourth-quarter 2019 results on Feb 27.

For fourth-quarter 2019, the Zacks Consensus Estimate for revenues is pegged at $1.67 billion, indicating an improvement of 0.6% from the prior-year quarter.

Further, the Zacks Consensus Estimate for earnings is pegged at 41 cents per share, suggesting a decline of 19.6% from the year-ago reported figure.

The company has beat estimates in three of the trailing four quarters while missing the same once.  It has a trailing four-quarter positive earnings surprise of 14.51%, on average.

Nielsen Holdings Plc Price and EPS Surprise

Nielsen Holdings Plc Price and EPS Surprise
Nielsen Holdings Plc Price and EPS Surprise

Nielsen Holdings Plc price-eps-surprise | Nielsen Holdings Plc Quote

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Factors to Consider

Nielsen’s strong product lines and continuous investment in its addressable TV platform are likely to get reflected in the fourth-quarter results. Moreover, the company’s strengthening presence in advertising market is anticipated to have contributed to the results of 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 fourth quarter.

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

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

Moreover, the strategy 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 fourth 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 remained a tailwind. Further, shift in timings from third quarter to fourth quarter is expected to have driven growth in Nielsen’s Measurement.

During the fourth quarter, the company decided to separate Global Media and Global Connect businesses into two independent, publicly-traded companies — the Global Media business and the Global Connect business as part of the ongoing strategic review plan. This has been a positive.

However, sluggish growth in emerging markets served might have hurt the fourth-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 the fourth-quarter results.

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.

Nielsen has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

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

Benefitfocus, Inc BNFT has an Earnings ESP of +35.48% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Guidewire Software, Inc. GWRE has an Earnings ESP of +15.39% and a Zacks Rank #2.

CrowdStrike Holdings, Inc. CRWD has an Earnings ESP of +5.26% and a Zacks Rank #3.

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Nielsen Holdings Plc (NLSN) : Free Stock Analysis Report
 
Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report
 
Benefitfocus, Inc. (BNFT) : Free Stock Analysis Report
 
CrowdStrike Holdings Inc. (CRWD) : Free Stock Analysis Report
 
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