The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nielsen Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins improved across the board.
Nielsen Holdings notched revenue of $1.42 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.46 billion. GAAP sales were 3.6% higher than the prior-year quarter's $1.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share on the same basis. GAAP EPS were $0.27 for Q4 compared to -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.3%, 110 basis points better than the prior-year quarter. Operating margin was 20.3%, 260 basis points better than the prior-year quarter. Net margin was 6.7%, 660 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $5.76 billion. The average EPS estimate is $1.74.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 19 members out of 21 rating the stock outperform, and two members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Nielsen Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nielsen Holdings is outperform, with an average price target of $35.80.
- Add Nielsen Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.