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Here's How Mondelez (MDLZ) is Placed Ahead of Q4 Earnings
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Mondelez International, Inc. (MDLZ - Free Report) is likely to register an increase in the top and bottom lines when it reports fourth-quarter 2020 numbers on Jan 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.16 billion, which indicates an increase of 3.6% from the prior-year quarter’s reported figure. For 2020, the consensus mark for revenues is pegged at $26.45 billion.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged at 67 cents per share in the past 30 days. The estimate suggests growth of 9.8% from the year-ago quarter’s reported figure. For 2020, the consensus mark for earnings is pegged at $2.59 per share, suggesting an increase of 4.9% from the prior-year’s reported figure. Notably, the company has a trailing four-quarter earnings surprise of 5.1%, on average.
Mondelez International, Inc. Price and EPS Surprise
Mondelez is witnessing a spike in demand primarily in the developed markets like North America and Europe mass retail owing to higher at-home consumption amid the coronavirus outbreak. Incidentally, the company projects organic net revenues growth of more than 3.5% in 2020. Further, management anticipates adjusted earnings per share (EPS) growth of more than 5% at constant currency in same period. Moreover, the company is on track with its cost-saving efforts. Also, well-chalked endeavors such as product innovations, brand building through promotions and buyouts bode well.
However, in its last earnings call, Mondelez stated that it expects to see various coronavirus-related restrictions and challenging economic circumstances in parts of Latin America and Middle East Africa. Also, the impact adverse currency fluctuations cannot be ignored. Notably, unfavorable currency rates are expected to have had reduced net revenue growth by nearly 3%, while adjusted EPS is likely to have had a negative impact of 4 cents by the same in 2020.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Mondelez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Mondelez carries a Zacks Rank #3 and an Earnings ESP of +0.69%.
Other Stocks With Favorable Combinations
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Estee Lauder (EL - Free Report) currently has an Earnings ESP of +0.55% and carries a Zacks Rank #3.
Altria (MO - Free Report) currently has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Here's How Mondelez (MDLZ) is Placed Ahead of Q4 Earnings
Mondelez International, Inc. (MDLZ - Free Report) is likely to register an increase in the top and bottom lines when it reports fourth-quarter 2020 numbers on Jan 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.16 billion, which indicates an increase of 3.6% from the prior-year quarter’s reported figure. For 2020, the consensus mark for revenues is pegged at $26.45 billion.
The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged at 67 cents per share in the past 30 days. The estimate suggests growth of 9.8% from the year-ago quarter’s reported figure. For 2020, the consensus mark for earnings is pegged at $2.59 per share, suggesting an increase of 4.9% from the prior-year’s reported figure. Notably, the company has a trailing four-quarter earnings surprise of 5.1%, on average.
Mondelez International, Inc. Price and EPS Surprise
Mondelez International, Inc. price-eps-surprise | Mondelez International, Inc. Quote
Key Factors to Note
Mondelez is witnessing a spike in demand primarily in the developed markets like North America and Europe mass retail owing to higher at-home consumption amid the coronavirus outbreak. Incidentally, the company projects organic net revenues growth of more than 3.5% in 2020. Further, management anticipates adjusted earnings per share (EPS) growth of more than 5% at constant currency in same period. Moreover, the company is on track with its cost-saving efforts. Also, well-chalked endeavors such as product innovations, brand building through promotions and buyouts bode well.
However, in its last earnings call, Mondelez stated that it expects to see various coronavirus-related restrictions and challenging economic circumstances in parts of Latin America and Middle East Africa. Also, the impact adverse currency fluctuations cannot be ignored. Notably, unfavorable currency rates are expected to have had reduced net revenue growth by nearly 3%, while adjusted EPS is likely to have had a negative impact of 4 cents by the same in 2020.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Mondelez this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Mondelez carries a Zacks Rank #3 and an Earnings ESP of +0.69%.
Other Stocks With Favorable Combinations
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +15.2% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estee Lauder (EL - Free Report) currently has an Earnings ESP of +0.55% and carries a Zacks Rank #3.
Altria (MO - Free Report) currently has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>