In Q3, US Markets Queer the Pitch for Nielsen N.V. Ordinary Shares (NYSE:NLSN)

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Shares in information and data provider Nielsen N.V. Ordinary Shares (NYSE:NLSN) were clobbered after the company disappointed on its third quarter results and tweaked downwards its outlook for the full year 2016.

The stock fell 16.89% to close at $45.65 with 21.05 million shares changing hands, more than 10 times the normal average volume of 1.91 million shares.

Technically, the stock has broken down on high volume through all the 20-day, 50-day and 200-day moving averages, indicating a huge reversal in momentum. The fall has erased all of the gains in the stock since February 2016.

Forgettable quarter for Nielsen N.V. Ordinary Shares (NYSE:NLSN)

For the third quarter, the company reported EPS of $0.74, which missed by $0.02 and revenue of $1.57 billion that missed estimates by $20 million but was up 2.6% year on year.

The company’s Watch business, which provides statistics on viewership of content, the company did well with its Total Audience Measurement System, but the Buy business, which provides information on global retail trends, was a different story.

While the Watch business grew revenues by 6.4% year on year to $761 million, revenues at the Buy business fell 0.9% year on year to $809 million.

“Emerging markets continued to produce solid topline growth as our investments in coverage and granularity, and our balance strength with both local and global clients continued to pay off,” said Mitch Barns, CEO. “But regarding developed markets, while Europe made good progress in the quarter, our US results were down versus the prior year, as clients looked for more efficiency and productivity in the face of increasingly difficult growth environment.”

Nielsen N.V. Ordinary Shares (NYSE:NLSN)’s outlook for 2016

The company shifted its guidance for net income for the full year 2016 downwards. Adjusted net income per share is expected to be in the range of $2.73 a share and $2.79 a share, down from the previously expected $2.83 a share and $2.93 a share.

Revenue is expected to grow 3.5% – 4% for the year.

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