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Mondelez (MDLZ) Beats Earnings & Revenue Estimates in Q1
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Mondelez International, Inc. (MDLZ - Free Report) reported first-quarter 2018 results, with the earnings and revenues beating the consensus mark. The company posted impressive results on the back of strong performance in Asia, Middle East & Africa and Europe. Notably, shares inched up 1.6% in after-hours trading on May 1.
Adjusted earnings of 62 cents per share beat the Zacks Consensus Estimate of 61 cents. Adjusted earnings grew 9.6%, primarily driven by favorability on interest and less number of shares outstanding.
Sales Details
Net revenues increased 5.5 % year over year to $6.77 billion driven by currency tailwinds. Emerging markets’ net revenues rose 7.6%, while Power Brands witnessed 8.2% increase in revenues.
Regionally, Asia, Middle East & Africa and Europe registered an increase of 3.4% and 14.4% in revenues, respectively. However, revenues in the North America and Latin America declined 1.3% and 2.1%, respectively.
Reported total revenues surpassed the Zacks Consensus Estimate of $6.65 billion.
Organic revenues increased 2.4% and were flat year over year. The improvement was primarily driven by Power Brands as well as strong performance in Europe and Asia, Middle East & Africa.
Pricing increased 0.7 percentage points (pp), down from 2.1 pp in the last reported quarter. Volume/Mix had a positive impact of 1.7 pp to the revenues. It was 0.3 pp in the last reported quarter.
Margins
Adjusted gross margin was 39.4%, down 110 basis points (bps) owing to unfavorable mix, higher commodity costs and freight inflation.
However, adjusted operating margin expanded 20 bps year over year to 16.7% on the back of lower selling, general & administrative costs and supply chain productivity savings.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez reported cash and cash equivalents of $1,130 million as of Mar 31, 2018, down from $761 million at the end of 2017.
The company repurchased approximately $500 million of its common stock and paid approximately $300 million in cash dividends.
Guidance
Organic net revenues are expected to increase between 1% and 2%. Adjusted operating margin is expected to be 17%.
Management continues to expect adjusted earnings to grow by double-digit on a constant-currency basis.
The company now expects currency translation to boost net revenues by approximately 2% (from previous estimate of 4%) and adjusted EPS by approximately 6 cents (from prior projection of 12.3 cents).
The company continues to expect Free Cash Flow of approximately $2.8 billion.
Zacks Rank
Mondelez has a Zacks Rank #4 (Sell).
Upcoming Peer Releases
Monster Beverage Corp. (MNST - Free Report) , B&G Foods, Inc. (BGS - Free Report) and Kellogg Company (K - Free Report) are expected to report quarterly results on May 3.
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Mondelez (MDLZ) Beats Earnings & Revenue Estimates in Q1
Mondelez International, Inc. (MDLZ - Free Report) reported first-quarter 2018 results, with the earnings and revenues beating the consensus mark. The company posted impressive results on the back of strong performance in Asia, Middle East & Africa and Europe. Notably, shares inched up 1.6% in after-hours trading on May 1.
Adjusted earnings of 62 cents per share beat the Zacks Consensus Estimate of 61 cents. Adjusted earnings grew 9.6%, primarily driven by favorability on interest and less number of shares outstanding.
Sales Details
Net revenues increased 5.5 % year over year to $6.77 billion driven by currency tailwinds. Emerging markets’ net revenues rose 7.6%, while Power Brands witnessed 8.2% increase in revenues.
Regionally, Asia, Middle East & Africa and Europe registered an increase of 3.4% and 14.4% in revenues, respectively. However, revenues in the North America and Latin America declined 1.3% and 2.1%, respectively.
Reported total revenues surpassed the Zacks Consensus Estimate of $6.65 billion.
Organic revenues increased 2.4% and were flat year over year. The improvement was primarily driven by Power Brands as well as strong performance in Europe and Asia, Middle East & Africa.
Pricing increased 0.7 percentage points (pp), down from 2.1 pp in the last reported quarter. Volume/Mix had a positive impact of 1.7 pp to the revenues. It was 0.3 pp in the last reported quarter.
Margins
Adjusted gross margin was 39.4%, down 110 basis points (bps) owing to unfavorable mix, higher commodity costs and freight inflation.
However, adjusted operating margin expanded 20 bps year over year to 16.7% on the back of lower selling, general & administrative costs and supply chain productivity savings.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. Price, Consensus and EPS Surprise | Mondelez International, Inc. Quote
Financials
Mondelez reported cash and cash equivalents of $1,130 million as of Mar 31, 2018, down from $761 million at the end of 2017.
The company repurchased approximately $500 million of its common stock and paid approximately $300 million in cash dividends.
Guidance
Organic net revenues are expected to increase between 1% and 2%. Adjusted operating margin is expected to be 17%.
Management continues to expect adjusted earnings to grow by double-digit on a constant-currency basis.
The company now expects currency translation to boost net revenues by approximately 2% (from previous estimate of 4%) and adjusted EPS by approximately 6 cents (from prior projection of 12.3 cents).
The company continues to expect Free Cash Flow of approximately $2.8 billion.
Zacks Rank
Mondelez has a Zacks Rank #4 (Sell).
Upcoming Peer Releases
Monster Beverage Corp. (MNST - Free Report) , B&G Foods, Inc. (BGS - Free Report) and Kellogg Company (K - Free Report) are expected to report quarterly results on May 3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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