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Mondelez International, Inc. (MDLZ - Free Report) reported second-quarter 2017 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Second-quarter adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate of 46 cents by 4.3%.
Adjusted earnings grew 19%, primarily driven by operating gains and lower divestiture-related costs.
Sales Details
Net revenue declined 5% year over year to $5.99 billion due to negative currency impact and global cyber attack. Emerging markets’ net revenues decreased 1.5% while developed markets reported revenue declined 7.1%. Power Brands also witnessed 3% decline in revenues.
Regionally, Asia, Middle East & Africa, Europe, and North America registered a respective 3.6%, 5.3% and 8.5% decline in revenues. However, Latin America’s revenues increased 0.6%.
Reported total revenues exceeded the Zacks Consensus Estimate of $5.95 billion.
Organic revenues however declined 2.7%, softer than the 0.6% growth seen last quarter. The downside was primarily due to the global cyber attack, which wreaked havoc across Europe and the U.S. at the end of June.
Pricing increased 1.1%, same as in the previous quarter. Volume mix decreased 3.8%, wider than the 0.5% decline in the last quarter.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Adjusted gross margin decreased 10 basis points (bps) year over year to 40%, as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs.
However, adjusted operating margin increased 90 bps year over year to 15.8% on the back of lower selling, general and administrative costs.
Financials
Mondelez reported cash and cash equivalents of $1.4 billion as on Jun 30, 2017, down from $1.74 billion at the end of 2016.
The company returned $900 million of capital to shareholders through share repurchases and dividends in the second quarter.
Mondelez also announced a quarterly cash dividend of 22 cents per share, reflecting an increase of 16%.
2017 Guidance Reaffirmed
Organic net revenue is expected to increase 1% in 2017.
Adjusted operating margin is still expected in the mid 16% range. Mondelez remains on track to reach its 17–18% profit-margin goal by 2018.
Management expects adjusted earnings to increase at a double-digit rate on a constant-currency basis.
Dr Pepper Snapple Group Inc. reported second-quarter 2017 adjusted earnings per share of $1.25 missing the Zacks Consensus Estimate of $1.28 by 2.3%. Earnings were flat on a year-over-year basis.
The Hershey Company’s (HSY - Free Report) second-quarter adjusted earnings per share of $1.09 beat the Zacks Consensus Estimate of 91 cents by 19.8%. Earnings also increased from the year-ago profit level of 85 cents by 28.2%.
The Procter & Gamble Company (PG - Free Report) , popularly known as P&G, reported fourth-quarter fiscal 2017 core earnings of 85 cents per share beating the Zacks Consensus Estimate of 78 cents by 9%. The bottom line also increased 8% from the prior-year quarter.
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Mondelez (MDLZ) Q2 Earnings & Revenues Top, View Intact
Mondelez International, Inc. (MDLZ - Free Report) reported second-quarter 2017 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Second-quarter adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate of 46 cents by 4.3%.
Adjusted earnings grew 19%, primarily driven by operating gains and lower divestiture-related costs.
Sales Details
Net revenue declined 5% year over year to $5.99 billion due to negative currency impact and global cyber attack. Emerging markets’ net revenues decreased 1.5% while developed markets reported revenue declined 7.1%. Power Brands also witnessed 3% decline in revenues.
Regionally, Asia, Middle East & Africa, Europe, and North America registered a respective 3.6%, 5.3% and 8.5% decline in revenues. However, Latin America’s revenues increased 0.6%.
Reported total revenues exceeded the Zacks Consensus Estimate of $5.95 billion.
Organic revenues however declined 2.7%, softer than the 0.6% growth seen last quarter. The downside was primarily due to the global cyber attack, which wreaked havoc across Europe and the U.S. at the end of June.
Pricing increased 1.1%, same as in the previous quarter. Volume mix decreased 3.8%, wider than the 0.5% decline in the last quarter.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. Price, Consensus and EPS Surprise | Mondelez International, Inc. Quote
Margins
Adjusted gross margin decreased 10 basis points (bps) year over year to 40%, as strong net productivity and pricing gains were primarily offset by an unfavorable mix and higher input costs.
However, adjusted operating margin increased 90 bps year over year to 15.8% on the back of lower selling, general and administrative costs.
Financials
Mondelez reported cash and cash equivalents of $1.4 billion as on Jun 30, 2017, down from $1.74 billion at the end of 2016.
The company returned $900 million of capital to shareholders through share repurchases and dividends in the second quarter.
Mondelez also announced a quarterly cash dividend of 22 cents per share, reflecting an increase of 16%.
2017 Guidance Reaffirmed
Organic net revenue is expected to increase 1% in 2017.
Adjusted operating margin is still expected in the mid 16% range. Mondelez remains on track to reach its 17–18% profit-margin goal by 2018.
Management expects adjusted earnings to increase at a double-digit rate on a constant-currency basis.
Mondelez currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Dr Pepper Snapple Group Inc. reported second-quarter 2017 adjusted earnings per share of $1.25 missing the Zacks Consensus Estimate of $1.28 by 2.3%. Earnings were flat on a year-over-year basis.
The Hershey Company’s (HSY - Free Report) second-quarter adjusted earnings per share of $1.09 beat the Zacks Consensus Estimate of 91 cents by 19.8%. Earnings also increased from the year-ago profit level of 85 cents by 28.2%.
The Procter & Gamble Company (PG - Free Report) , popularly known as P&G, reported fourth-quarter fiscal 2017 core earnings of 85 cents per share beating the Zacks Consensus Estimate of 78 cents by 9%. The bottom line also increased 8% from the prior-year quarter.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>