Nielsen Holdings (NLSN) Tops Q2 EPS by 9c, Revenues Miss; Offers FY20 EPS Mid-Point Guidance Above Consensus

Nielsen Holdings (NYSE: NLSN) reported Q2 EPS of $0.41, $0.09 better than the analyst estimate of $0.32. Revenue for the quarter came in at $1.5 billion versus the consensus estimate of $1.51 billion.

David Kenny, Chief Executive Officer, commented, "We delivered solid results that were in line or above the outlook we provided in April amid a challenging environment due to the global COVID-19 pandemic, with both Media and Connect executing well. This is a testament to both the commitment and dedication of our teams and the strength of our client relationships. Our clients reacted quickly during a time of crisis to provide consumers with essential goods and services, and we also adapted quickly to provide clients with the essential measurement and analytics they need to drive business decisions in a dynamic environment. We took swift action in response to COVID-19 related revenue pressure by instituting greater discipline around operating costs and capital expenditures, enabling us to minimize the impact on EBITDA and free cash flow in the second quarter."

Kenny continued, "In July, we announced a broad-based plan to accelerate our business transformation. We are prioritizing resources to focus on key strategic initiatives, higher margin products and services, and greater efficiency, which will drive agility and scale. Importantly, we expect our actions will permanently reduce our cost structure, driving margin expansion, increased cash generation and providing added flexibility to invest in key growth initiatives that will enable us to better serve our clients in rapidly evolving ecosystems. We have confidence in our ability to deliver on our objectives and we are refining our guidance for the full year 2020. We remain focused on the separation of Nielsen Global Media and Nielsen Global Connect, which we expect to complete in the first quarter of 2021. We have two strong businesses and both are well-positioned for their futures as standalone companies."

GUIDANCE:

Nielsen Holdings sees FY2020 EPS of $1.50-$1.62, versus the consensus of $1.50.

The Company is refining full year 2020 guidance, as highlighted below:

• Total revenue growth on a constant currency basis: -4% to -2% (previously -4% to -1%)
• Adjusted EBITDA margin: 29% - 30% (previously 28.5% - 29.5%)
• Adjusted EBITDA: $1,800 - $1,860 million (previously $1,790 - $1,860 million)
• Adjusted earnings per share: $1.50 - $1.62 (previously $1.43 - $1.58)
• Free cash flow: $480 - $530 million (previously $460 - $530 million)

These estimates exclude $275 - $300 million of cash separation-related costs in 2020, the majority of which will occur close to the separation date.

For earnings history and earnings-related data on Nielsen Holdings (NLSN) click here.

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