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Nielsen (NLSN) Surpasses Q3 Earnings and Revenue Estimates

Nielsen Holdings NLSN has reported third-quarter 2021 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate by 25% and grew 7.1% year over year.

Total revenues were $882 million, up 6.2% year over year. The figure surpassed the consensus mark of $869 million.

On a constant-currency basis, revenues increased 5.1% year over year. Further, the figure rose 5.5% and 6.6% from the year-ago quarter on a reported and organic basis, respectively.

A solid momentum across Audience Measurement as well as Outcomes and Content drove top-line growth in the reported quarter.

Nielsen Holdings Plc Price, Consensus and EPS Surprise

Nielsen Holdings Plc Price, Consensus and EPS Surprise
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 third quarter, Audience Measurement revenues rose 3.9% year over year to $637 million (73.1% of total revenues). This was primarily attributed to the strength across national and digital measurement categories

Outcomes and Content revenues increased 9.9% to $245 million (26.9% of the total revenues), driven by the improving Sports business, robust growth in Content and growing short-cycle revenues.

Operating Details

Adjusted EBITDA increased 2.1% year over year to $382 million. Adjusted EBITDA margin contracted 143 basis points (bps) to 43.3% in the reported quarter.

Nielsen’s selling, general and administrative expenses were $218 million, increasing 30.5% year over year.

Operating income was $222 million, which remained flat year over year. As a percentage of revenues, the figure contracted 140 bps year over year to 25.2%.

Balance Sheet & Cash Flow

As of Sep 30, 2021, the cash and cash equivalent balance was $542 million, down from $410 as of Jun 30, 2021.

As of Sep 30, 2021, gross debt was $5.8 billion, resulting in net debt (gross debt minus cash and cash equivalents) of $5.3 billion.

The company generated $271 million of cash from operations compared with $213 million in the previous quarter.

Its free cash flow was $201 million in the third quarter.

2021 Guidance

For 2021, the company revised the revenue growth guidance from 2.5-3% to 3-3.25%. Organic revenue growth guidance was also revised from 4-4.5% to 4.5-4.75%. The Zacks Consensus Estimate for 2021 revenues is pegged at $3.49 billion.

The company raised the adjusted earnings guidance from $1.54-$1.61 per share to $1.65-$1.70. The consensus mark for the same is pegged at $1.59 per share.

Nielsen revised the guidance for Adjusted EBITDA from $1.475-$1.490 billion to $1.48-$1.49 billion.

Zacks Rank & Stocks to Consider

Currently, Nielsen has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Trimble TRMB, Semtech Corp. SMTC and Apple AAPL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Trimble, Semtech, and Apple are currently projected at 10%, 12.5%, and 12.5%, respectively.


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Nielsen Holdings Plc (NLSN) : Free Stock Analysis Report

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