Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Nielsen Holdings (NYSE: NLSN) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- NIELSEN HOLDINGS NV has improved earnings per share by 10.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, NIELSEN HOLDINGS NV increased its bottom line by earning $0.71 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $0.71).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 309.6% when compared to the same quarter one year prior, rising from $104.00 million to $426.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 77.58% to $206.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 43.07%.
- The gross profit margin for NIELSEN HOLDINGS NV is rather high; currently it is at 58.15%. Regardless of NLSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NLSN's net profit margin of 30.73% significantly outperformed against the industry.