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Don't Overlook Mondelez (MDLZ) International Revenue Trends While Assessing the Stock
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Did you analyze how Mondelez (MDLZ - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this maker of Oreo cookies, Cadbury chocolate and Trident gum, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While delving into MDLZ's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
For the quarter, the company's total revenue amounted to $9.29 billion, experiencing an increase of 1.4% year over year. Next, we'll explore the breakdown of MDLZ's international revenue to understand the importance of its overseas business operations.
A Closer Look at MDLZ's Revenue Streams Abroad
AMEA generated $1.95 billion in revenues for the company in the last quarter, constituting 21.0% of the total. This represented a surprise of +1.62% compared to the $1.92 billion projected by Wall Street analysts. Comparatively, in the previous quarter, AMEA accounted for $1.74 billion (18.6%), and in the year-ago quarter, it contributed $1.94 billion (21.2%) to the total revenue.
Of the total revenue, $1.32 billion came from Latin America during the last fiscal quarter, accounting for 14.2%. This represented a surprise of +0.59% as analysts had expected the region to contribute $1.31 billion to the total revenue. In comparison, the region contributed $1.26 billion, or 13.6%, and $1.21 billion, or 13.2%, to total revenue in the previous and year-ago quarters, respectively.
Europe accounted for 36.3% of the company's total revenue during the quarter, translating to $3.37 billion. Revenues from this region represented a surprise of +3.1%, with Wall Street analysts collectively expecting $3.27 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $3.54 billion (38%) and $3.31 billion (36.1%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Mondelez to report $8.53 billion in total revenue for the current fiscal quarter, indicating an increase of 0.3% from the year-ago quarter. AMEA, Latin America and Europe are expected to contribute 18.7% ($1.59 billion), 14.4% ($1.23 billion) and 35.3% ($3.01 billion) to the total revenue, respectively.
For the full year, a total revenue of $36.79 billion is expected for the company, reflecting an increase of 2.2% from the year before. The revenues from AMEA, Latin America and Europe are expected to make up 19.5%, 14% and 36.5% of this total, corresponding to $7.18 billion, $5.16 billion and $13.41 billion respectively.
Key Takeaways
Mondelez's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Assessing Mondelez's Stock Price Movement in Recent Times
Over the past month, the stock has seen an increase of 2.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 1.6%. The Zacks Consumer Staples sector, Mondelez's industry group, has ascended 1.5% over the identical span. In the past three months, there's been a decline of 4.5% in the company's stock price, against a rise of 3.8% in the S&P 500 index. The broader sector has increased by 0.9% during this interval.
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Don't Overlook Mondelez (MDLZ) International Revenue Trends While Assessing the Stock
Did you analyze how Mondelez (MDLZ - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this maker of Oreo cookies, Cadbury chocolate and Trident gum, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While delving into MDLZ's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
For the quarter, the company's total revenue amounted to $9.29 billion, experiencing an increase of 1.4% year over year. Next, we'll explore the breakdown of MDLZ's international revenue to understand the importance of its overseas business operations.
A Closer Look at MDLZ's Revenue Streams Abroad
AMEA generated $1.95 billion in revenues for the company in the last quarter, constituting 21.0% of the total. This represented a surprise of +1.62% compared to the $1.92 billion projected by Wall Street analysts. Comparatively, in the previous quarter, AMEA accounted for $1.74 billion (18.6%), and in the year-ago quarter, it contributed $1.94 billion (21.2%) to the total revenue.
Of the total revenue, $1.32 billion came from Latin America during the last fiscal quarter, accounting for 14.2%. This represented a surprise of +0.59% as analysts had expected the region to contribute $1.31 billion to the total revenue. In comparison, the region contributed $1.26 billion, or 13.6%, and $1.21 billion, or 13.2%, to total revenue in the previous and year-ago quarters, respectively.
Europe accounted for 36.3% of the company's total revenue during the quarter, translating to $3.37 billion. Revenues from this region represented a surprise of +3.1%, with Wall Street analysts collectively expecting $3.27 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $3.54 billion (38%) and $3.31 billion (36.1%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Mondelez to report $8.53 billion in total revenue for the current fiscal quarter, indicating an increase of 0.3% from the year-ago quarter. AMEA, Latin America and Europe are expected to contribute 18.7% ($1.59 billion), 14.4% ($1.23 billion) and 35.3% ($3.01 billion) to the total revenue, respectively.
For the full year, a total revenue of $36.79 billion is expected for the company, reflecting an increase of 2.2% from the year before. The revenues from AMEA, Latin America and Europe are expected to make up 19.5%, 14% and 36.5% of this total, corresponding to $7.18 billion, $5.16 billion and $13.41 billion respectively.
Key Takeaways
Mondelez's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, Mondelez holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Mondelez's Stock Price Movement in Recent Times
Over the past month, the stock has seen an increase of 2.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 1.6%. The Zacks Consumer Staples sector, Mondelez's industry group, has ascended 1.5% over the identical span. In the past three months, there's been a decline of 4.5% in the company's stock price, against a rise of 3.8% in the S&P 500 index. The broader sector has increased by 0.9% during this interval.