NIQ Global Intelligence PLC (NYSE:NIQ) saw its share price soar by 42 percent on Tuesday to close at $16.58 after beating its estimates in the second quarter and raising its growth outlook for the full year.
In an updated report, the consumer intelligence firm said that it raked in $1.124 billion in revenues for the period, marking an 8 percent jump from the $1.04 billion in the same period last year, and beating its earlier expectations of $1.103 billion to $1.107 billion.
The intelligence business segment accounted for the largest chunk at $905.3 million, up 7.6 percent year-on-year, while activation revenues amounted to $218.9 million, or growth of 9.9 percent from the same period last year.
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Adjusted EBITDA, on the other hand, finished 21.9 percent higher at $261.9 million versus $214.9 million year-on-year, also well above its previous guidance of $242 million to $246 million.
The company, however, widened its attributable net loss by more than 1,
Adjusted EPS stood at $0.27, beating expectations of $0.19 to $0.21.
Higher FY26 Outlook
Encouraged by the strong results, NIQ Global Intelligence PLC (NYSE:NIQ) raised its growth expectations for the full-year period.
Revenues are now targeted to grow between 7.1 percent and 7.4 percent year-on-year to a range of $4.496 billion to $4.510 billion. This compares with its previous expectations of 6.4 to 6.7 percent growth at $4.466 billion to $4.479 billion.
Adjusted EBITA is also expected to end at $1.057 billion to $1.076 billion, or a jump from the $1.05 billion to $1.067 billion outlook previously.
Adjusted EPS is projected at $1.08 to $1.12, versus $0.95 to $0.99 prior.
In the third quarter alone, NIQ Global Intelligence PLC (NYSE:NIQ) expects revenues to grow by 5 percent to a range of $1.105 billion to $1.108 billion, while adjusted EBITDA is projected to jump by 15 to 17 percent to a range of $255 million to $261 million.
EPS is pegged at $0.22 to $0.24, versus a loss per share of $0.03 in the same period last year.
Price Target Hike
Following the results, the company has earned a price target upgrade from three investment firms, namely UBS, RBC Capital, and Deutsche Bank.
UBS alone raised its price target to $17 from $15, while maintaining a buy recommendation, while RBC Capital increased its target to $17 from $13 while assigning an outperform rating.
Deutsche Bank, for its part, hiked its target to $15 from $14, but maintained a more conservative “hold” rating.
Lesser Hedge Funds
Hedge funds noticeably reduced their exposure in the company in the first quarter of the year.
Based on data from Insider Monkey, 24 hedge funds held positions in NIQ Global Intelligence PLC (NYSE:NIQ) during the period, down from 26 in the quarter prior.
More importantly, their combined holdings fell by 29 percent to $281 million from $397.5 million, signaling a more cautious stance.
As the said figures predated the company’s latest earnings report, the next round of filings could therefore provide an interesting read on institutional positioning, particularly whether hedge funds increased their exposure following the earnings beat and higher growth outlook.
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