Did you analyze how Mondelez (MDLZ Quick QuoteMDLZ - Free Report) fared in its international operations for the quarter ending September 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.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

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.

The company's total revenue for the quarter amounted to $9.2 billion, showing rise of 1.9%. We will now explore the breakdown of MDLZ's overseas revenue to assess the impact of its international operations.

A Look into MDLZ's International Revenue Streams

Latin America accounted for 13.08% of the company's total revenue during the quarter, translating to $1.2 billion. Revenues from this region represented a surprise of -2.81%, with Wall Street analysts collectively expecting $1.24 billion. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $1.23 billion (14.77%) and $1.31 billion (14.45%) to the total revenue, respectively.

Of the total revenue, $3.32 billion came from Europe during the last fiscal quarter, accounting for 36.10%. This represented a surprise of +1.59% as analysts had expected the region to contribute $3.27 billion to the total revenue. In comparison, the region contributed $2.87 billion, or 34.45%, and $3.09 billion, or 34.18%, to total revenue in the previous and year-ago quarters, respectively.

AMEA generated $1.85 billion in revenues for the company in the last quarter, constituting 20.11% of the total. This represented a surprise of +3.08% compared to the $1.8 billion projected by Wall Street analysts. Comparatively, in the previous quarter, AMEA accounted for $1.59 billion (19.02%), and in the year-ago quarter, it contributed $1.79 billion (19.84%) to the total revenue.

Anticipated Revenues in Overseas Markets

It is projected by analysts on Wall Street that Mondelez will post revenues of $9.76 billion for the ongoing fiscal quarter, an increase of 4.8% from the year-ago quarter. The expected contributions from Latin America, Europe and AMEA to this revenue are 12.3%, 39.4% and 18.5%, translating into $1.2 billion, $3.85 billion and $1.81 billion, respectively.

For the full year, the company is expected to generate $36.57 billion in total revenue, up 1.5% from the previous year. Revenues from Latin America, Europe and AMEA are expected to constitute 13.6% ($4.98 billion), 36.6% ($13.38 billion) and 19.6% ($7.18 billion) of the total, respectively.

Wrapping Up

Mondelez's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these 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.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Mondelez, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. 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

The stock has declined by 4.2% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Mondelez, has decreased 5.1% during this time frame. Over the past three months, the company's shares have experienced a loss of 1.7% relative to the S&P 500's 5.5% increase. Throughout this period, the sector overall has witnessed a 1.8% decrease.