Nielsen Holdings N.V. NLSN recently approved a share repurchase authorization of $500 million.
The company expects to complete the share repurchase program by the end of 2017. This adds to the existing authorization of approximately $350 million, expected to be available for repurchase through Dec 31, 2015.
The timing and the number of shares to be repurchased will depend on management’s evaluation of market conditions and other corporate considerations.
The strength of Nielsen’s business model reflects its commitment toward returning value to shareholders using strong cash generation capabilities. We believe that the continued share buybacks will increase investors’ enthusiasm, while helping the company to maintain its financial position.
Nielsen Holdings is an information and measurement company which provides media and marketing information and analytics about what consumers watch (consumer interaction with television, online and mobile) and buy on a global as well as local basis. In third-quarter 2015, Nielsen’s net debt position came in at $7.1 billion and net debt leverage ratio was 3.83x. The company had a cash balance of approximately $358 million as against $331 million in the prior quarter.
The company’s revenues decreased 1.8% sequentially and 2.6% year over year to $1.53 billion. The year-over-year decline was the result of unfavorable foreign currency impact. However, earnings of 67 cents exceeded the Zacks Consensus Estimate by a penny.
Currently, Nielsen has a Zacks Rank #3 (Hold). Some better-ranked stocks that have been performing well are VASCO Data Security International Inc. VDSI, Stamps.com Inc. STMP and Dun & Bradstreet Corp. DNB. While VASCO Data Security and Stamps.com sport a Zacks Rank #1 (Strong Buy), Dun & Bradstreet has a Zacks Rank #2 (Buy).
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