The 10-second takeaway
For the quarter ended June 30 (Q2), Nielsen Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
Nielsen Holdings booked revenue of $1.39 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $1.40 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share. Non-GAAP EPS of $0.49 for Q2 were 17% higher than the prior-year quarter's $0.42 per share. GAAP EPS of $1.11 for Q2 were 296% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.2%, 110 basis points worse than the prior-year quarter. Operating margin was 17.7%, 60 basis points worse than the prior-year quarter. Net margin was 30.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.41 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $5.65 billion. The average EPS estimate is $2.00.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 27 rating the stock outperform, and seven members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Nielsen Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nielsen Holdings is outperform, with an average price target of $37.77.
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