Nielsen misses by $0.43, misses on revs; lowers FY 18 guidance, is conducting an 'in-depth strategic review' of its Buy segment
- Reports Q2 (Jun) earnings of $0.20 per share, $0.43 worse thanthe Capital IQ Consensus of $0.63; revenues rose 0.2% year/year to $1.65 bln vs the $1.71 bln Capital IQ Consensus.
- Revised FY 18 guidance: GAAP net income per share of $0.95-1.00 from $1.50-1.56, revs down ~1% from up ~3%, Free cash flow of $550-575 mln from ~$800 mln
- Co states, "Our cost reduction efforts are ahead of schedule and we are accelerating cost-out targets. In Buy Developed Markets, we saw increased pressure in the fast moving consumer goods end markets; however, we made great progress with the Connected System, retailer initiatives, and Total Consumer Measurement. In Emerging Markets, weakness in multinational client spending was offset by growth with local clients. In Watch, ongoing adoption of Total Audience Measurement continued to drive growth. However, the General Data Protection Regulation and changes in the consumer data privacy landscape impacted our growth rates in the near-term as clients and partners grapple with the changes and work to ensure compliance."
- In a separate press release, Nielsen announced the year-end retirement of CEO Mitch Barnes and the start of a search for his permanent replacement. Furthermore, the company is conducting a strategic review for its buy segment, where Nielsen tracks and analyzes consumer behaviors related to retail purchases and preferences. That division posted 4% lower revenue in the second quarter, while the media-tracking "watch" segment showed 4.5% revenue growth instead.
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