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Mondelez's (MDLZ) Q3 Earnings Upcoming: Key Things to Note
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Mondelez International, Inc. (MDLZ - Free Report) is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Nov 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $7,479 million, suggesting a rise of 3.9% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has gone up by a penny in the past seven days to 68 cents per share. However, this indicates a 4.2% decline from the figure reported in the prior-year fiscal quarter.
The snack food and beverage product company has a trailing four-quarter earnings surprise of 4.6%, on average. MDLZ delivered an earnings surprise of 4.7% in the last reported quarter.
Factors to Consider
Mondelez has been gaining from strength in emerging markets and its focus on strengthening the snacking category. In the second quarter of 2022, revenues from emerging markets increased by 22.4% to $2,806 million while rising 22.5% on an organic basis.
Mondelez International, Inc. Price, Consensus and EPS Surprise
The company saw strength in all major business units. On its second-quarter earnings call, the company stated that consumer confidence was reverting to pre-pandemic levels in emerging markets. This bodes well for the quarter under review.
Mondelez has been keen on expanding its business through acquisitions. The company has been expanding its snacking category in particular.
As consumers prefer snacking over traditional meals, the company’s core categories — chocolates and biscuits — have historically depicted resilience to economic downturns and pricing actions. Consumers in developed countries consider chocolates and biscuits as affordable indulgences and one of the most-valued snacking products.
Contributions from the buyouts of Clif Bar (August 2022) and Chipita S.A. (January 2022) are likely to aid Mondelez’s third-quarter results.
That said, Mondelez has been battling cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. The company is also navigating through supply-chain bottlenecks due to labor shortages at third parties. Management’s guidance for 2022 reflects anticipation of the elevated cost of goods sold inflation, the timing impact of extra pricing actions and the impacts of the Ukraine war.
While commodity cost inflation may ease, management expects other costs, such as wages, to reflect considerable inflation. Apart from input cost inflation, the guidance includes investments to support brands and other growth-oriented investments. The company has been undertaking strong pricing efforts to counter inflationary headwinds.
Volatile currency movements are also an area of concern. On its second-quarter 2022 earnings call, management stated that currency movements are likely to negatively impact net revenues by nearly 5% and the adjusted EPS by 22 cents in 2022. These aspects raise concerns for the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Mondelez this time. 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, which is not the case here.
Mondelez has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of 10.5% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
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Mondelez's (MDLZ) Q3 Earnings Upcoming: Key Things to Note
Mondelez International, Inc. (MDLZ - Free Report) is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Nov 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $7,479 million, suggesting a rise of 3.9% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has gone up by a penny in the past seven days to 68 cents per share. However, this indicates a 4.2% decline from the figure reported in the prior-year fiscal quarter.
The snack food and beverage product company has a trailing four-quarter earnings surprise of 4.6%, on average. MDLZ delivered an earnings surprise of 4.7% in the last reported quarter.
Factors to Consider
Mondelez has been gaining from strength in emerging markets and its focus on strengthening the snacking category. In the second quarter of 2022, revenues from emerging markets increased by 22.4% to $2,806 million while rising 22.5% on an organic basis.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote
The company saw strength in all major business units. On its second-quarter earnings call, the company stated that consumer confidence was reverting to pre-pandemic levels in emerging markets. This bodes well for the quarter under review.
Mondelez has been keen on expanding its business through acquisitions. The company has been expanding its snacking category in particular.
As consumers prefer snacking over traditional meals, the company’s core categories — chocolates and biscuits — have historically depicted resilience to economic downturns and pricing actions. Consumers in developed countries consider chocolates and biscuits as affordable indulgences and one of the most-valued snacking products.
Contributions from the buyouts of Clif Bar (August 2022) and Chipita S.A. (January 2022) are likely to aid Mondelez’s third-quarter results.
That said, Mondelez has been battling cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. The company is also navigating through supply-chain bottlenecks due to labor shortages at third parties. Management’s guidance for 2022 reflects anticipation of the elevated cost of goods sold inflation, the timing impact of extra pricing actions and the impacts of the Ukraine war.
While commodity cost inflation may ease, management expects other costs, such as wages, to reflect considerable inflation. Apart from input cost inflation, the guidance includes investments to support brands and other growth-oriented investments. The company has been undertaking strong pricing efforts to counter inflationary headwinds.
Volatile currency movements are also an area of concern. On its second-quarter 2022 earnings call, management stated that currency movements are likely to negatively impact net revenues by nearly 5% and the adjusted EPS by 22 cents in 2022. These aspects raise concerns for the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Mondelez this time. 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, which is not the case here.
Mondelez has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank #3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of 10.5% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.