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Mondelez (MDLZ) to Report Q2 Earnings: What Should You Expect?

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Mondelez International, Inc. (MDLZ - Free Report) is likely to register improvement in the top and the bottom line when it reports second-quarter 2021 numbers on Jul 27.

The Zacks Consensus Estimate for quarterly earnings, which moved up by a penny in the past seven days to 65 cents per share, suggests 3.2% growth from the year-ago quarter’s reported figure. The manufacturer, marketer and seller of snack food and beverage products has a trailing four-quarter earnings surprise of 6%, on average. In the last reported quarter, the bottom line outperformed the Zacks Consensus Estimate by 11.6%.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $6,432 million, which suggests growth of 8.8% from the figure reported in the prior-year quarter.

Mondelez International, Inc. Price and EPS Surprise

 

Mondelez International, Inc. Price and EPS Surprise

Mondelez International, Inc. price-eps-surprise | Mondelez International, Inc. Quote

 

Things to Note

Mondelez has been seeing continued demand for snacks amid pandemic-led higher at-home consumption. The company is gaining from prudent buyouts. In its first-quarter earnings call, management stated that it took over a renowned sports performance and active nutrition brand — Grenade. The company also acquired an Australia-based food company — Gourmet Food Holdings — which operates in the premium biscuit and cracker category. In the last reported quarter, it’s Give & Go (concluded in April 2020) and Hu Master (concluded in January 2021) buyouts contributed to sales growth.

Mondelez has been undertaking brand-building efforts like investment in marketing capabilities and working media. Management is also focused on growing its e-commerce business, as consumers’ shift to online shopping has accelerated. Certainly, such robust trends are likely to get reflected in second-quarter 2021 performance.

However, the company is facing weakness in Gum & Candy business for a while, thanks to restricted mobility amid the coronavirus outbreak. The company is also battling pandemic-induced expenses as well as escalated raw material costs. That being said, management is on track with its saving initiatives like eliminating unnecessary costs from the supply chain among others.

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 #2 and an Earnings ESP of 2.47%.

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, Inc. (TSN - Free Report) currently has an Earnings ESP of +9.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast (MED - Free Report) currently has an Earnings ESP of +6.85% and carries a Zacks Rank #2.

B&G Foods, Inc. (BGS - Free Report) currently has an Earnings ESP of +6.82% and a Zacks Rank of 3.