Mondelez International's Quarterly Earnings Preview: What You Need to Know
Valued at a market cap of $94.5 billion, Mondelez International, Inc. (MDLZ) is a global snacks company that manufactures, markets, and sells snack food and beverage products. The Chicago, Illinois-based company’s product categories include chocolates, biscuits, gum and candy, beverages, cheese, and grocery products, and it is expected to announce its fiscal Q3 earnings results after the market closes on Tuesday, Oct. 29.
Ahead of this event, analysts project the confectionery company to report a profit of $0.84 per share, up 2.4% from $0.82 per share in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. Its adjusted earnings of $0.86 per share in the last quarter outpaced the consensus estimates by 10.3% and increased 25% from a year ago on a constant currency basis. The outperformance was driven by strong operating gains, lower interest expenses, and fewer outstanding shares, partially offset by higher taxes.
For fiscal 2024, analysts expect MDLZ to report an EPS of $3.49, up 9.4% from $3.19 in fiscal 2023. EPS is expected to increase 1.7% year-over-year to $3.55 in fiscal 2025.
Shares of MDLZ have declined 2.8% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 22.7% rise and the Consumer Staples Select Sector SPDR Fund’s (XLP) 13.2% return over the same period.
Shares of MDLZ gained 1.9% after its Q2 earnings release on Jul. 30. Although its revenue of $8.34 billion missed the consensus estimates of $8.39 billion, Mondelez’s upward stock price movement can be attributed to its adjusted earnings beat and declaration of an 11% increase in quarterly cash dividends.
Analysts' consensus view on Mondelez International’s stock is optimistic, with a "Strong Buy" rating overall. Among 21 analysts covering the stock, 19 recommend "Strong Buy," one suggests "Moderate Buy," and one indicates “Hold.”
The average analyst price target for MDLZ is $80.57, indicating a 14.4% potential upside from the current levels.
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On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.