Wednesday, October 26, 2016

Nielsen Misses Earnings Expectations

Shares of Nielsen Holdings plummeted more than 16 percent Tuesday after its quarterly earnings missed expectations.

According to CNBC, the global information and data company reported third-quarter earnings of 74 cents per share on revenue of $1.57 billion. Analysts expected earnings of 76 cents a share on revenue of $1.59 billion, according to Thomson Reuters.

Nielsen posted 69 cents a share and $1.53 billion in revenue, in the same period last year.

"While emerging markets continued to produce top-line growth, our results in the developed markets were disappointing, particularly in the U.S. Many of our clients are seeking efficiency and productivity in the face of a challenging growth environment," CEO Mitch Barns said in a statement.

Revenues within the company's Buy segment, an indicator of global retail performance, decreased 0.9 percent to $809 million for the quarter, the company said. Revenues in the Watch segment, however, increased by 6.7 percent to $761 million. The Watch segment provides clients with content viewing numbers across all platforms.

Nielsen adjusted its 2016 guidance for adjusted net income per share in the range of between $2.73 a share and $2.79 a share, down from a previous range of between $2.83 a share and $2.93 a share. Analysts expected $2.87 per share, according to Thomson Reuters.

With Tuesday's decline, the company's stock is now down more than 1 percent year to date.

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