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International Markets and Mondelez (MDLZ): A Deep Dive for Investors

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Have you looked into how Mondelez (MDLZ - Free Report) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this maker of Oreo cookies, Cadbury chocolate and Trident gum, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While analyzing MDLZ's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter stood at $9.6 billion, increasing 3.1% year over year. Now, let's delve into MDLZ's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring MDLZ's International Revenue Patterns

Latin America generated $1.17 billion in revenues for the company in the last quarter, constituting 12.19% of the total. This represented a surprise of -0.71% compared to the $1.18 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $1.2 billion (13.08%), and in the year-ago quarter, it contributed $1.26 billion (13.55%) to the total revenue.

Of the total revenue, $3.74 billion came from Europe during the last fiscal quarter, accounting for 38.98%. This represented a surprise of -1.47% as analysts had expected the region to contribute $3.8 billion to the total revenue. In comparison, the region contributed $3.32 billion, or 36.10%, and $3.54 billion, or 37.99%, to total revenue in the previous and year-ago quarters, respectively.

AMEA accounted for 19.87% of the company's total revenue during the quarter, translating to $1.91 billion. Revenues from this region represented a surprise of +3.48%, with Wall Street analysts collectively expecting $1.84 billion. When compared to the preceding quarter and the same quarter in the previous year, AMEA contributed $1.85 billion (20.11%) and $1.74 billion (18.64%) to the total revenue, respectively.

Anticipated Revenues in Overseas Markets

The current fiscal quarter's total revenue for Mondelez, as projected by Wall Street analysts, is expected to reach $9.4 billion, reflecting an increase of 1.2% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Latin America is anticipated to contribute 13.3% or $1.25 billion, Europe 36.8% or $3.46 billion and AMEA 22.2% or $2.08 billion.

For the full year, the company is projected to achieve a total revenue of $37.55 billion, which signifies a rise of 3% from the last year. The share of this revenue from various regions is expected to be: Latin America at 13.3% ($5.01 billion), Europe at 36.5% ($13.71 billion) and AMEA at 20.7% ($7.77 billion).

The Bottom Line

The dependency of Mondelez on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

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.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Mondelez, bearing a Zacks Rank #4 (Sell), is expected to underperform 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 >>>>

Reviewing Mondelez's Recent Stock Price Trends

Over the past month, the stock has seen a decline of 0.8% in its value, whereas the Zacks S&P 500 composite has posted an increase of 1.9%. The Zacks Consumer Staples sector, Mondelez's industry group, has ascended 1.8% over the identical span. In the past three months, there's been a decline of 11.8% in the company's stock price, against a rise of 3% in the S&P 500 index. The broader sector has declined by 3.2% during this interval.

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