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Factors Setting the Tone for Mondelez's (MDLZ) Q3 Earnings
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Mondelez International, Inc. (MDLZ - Free Report) is set to release third-quarter 2019 results on Oct 29, after market close. We note that the company’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average being 2%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Estimates for Q3
The Zacks Consensus Estimate for third-quarter 2019 earnings has been stable in the past 30 days at 61 cents, which suggests a decline of 1.6% from the year-ago quarter’s reported figure. The consensus mark for revenues is $6,321 million, which indicates an improvement of 0.5% from the prior-year quarter’s figure.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Well-chalked endeavors such as innovations under the SnackFutures platform, efforts to broaden good-for-you offerings, brand building through promotions and strategic buyouts are likely to have benefited Mondelez’s top line in the third quarter.
Markedly, acquisitions have played a vital role in augmenting Mondelez’s snacking business. In this context, the buyouts of Hu Master Holdings, Uplift Foods and minority stakes in Perfect Snacks are noteworthy. Also, the acquisition of Tate’s Bake Shop as well as partnerships with Keurig Dr Pepper and Post Consumer are expected to have contributed favorably.
However, Mondelez has been struggling with higher raw material costs. In this context, the impact of unfavorable commodity hedging is likely to have affected the company’s bottom line in the third quarter. Further, production delays and service delivery issues may persist. Moreover, the impact of any adverse currency fluctuation cannot be ignored.
Although the company has been on track with strategic pricing and savings initiatives, it is yet to be seen how these efforts have pared the aforementioned challenges when third-quarter numbers are reported.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mondelez this season. The combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Mondelez has a Zacks Rank #3, its Earnings ESP of -0.99% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Conagra Brands (CAG - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Factors Setting the Tone for Mondelez's (MDLZ) Q3 Earnings
Mondelez International, Inc. (MDLZ - Free Report) is set to release third-quarter 2019 results on Oct 29, after market close. We note that the company’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average being 2%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Estimates for Q3
The Zacks Consensus Estimate for third-quarter 2019 earnings has been stable in the past 30 days at 61 cents, which suggests a decline of 1.6% from the year-ago quarter’s reported figure. The consensus mark for revenues is $6,321 million, which indicates an improvement of 0.5% from the prior-year quarter’s figure.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote
Factors Likely to Impact Results
Well-chalked endeavors such as innovations under the SnackFutures platform, efforts to broaden good-for-you offerings, brand building through promotions and strategic buyouts are likely to have benefited Mondelez’s top line in the third quarter.
Markedly, acquisitions have played a vital role in augmenting Mondelez’s snacking business. In this context, the buyouts of Hu Master Holdings, Uplift Foods and minority stakes in Perfect Snacks are noteworthy. Also, the acquisition of Tate’s Bake Shop as well as partnerships with Keurig Dr Pepper and Post Consumer are expected to have contributed favorably.
However, Mondelez has been struggling with higher raw material costs. In this context, the impact of unfavorable commodity hedging is likely to have affected the company’s bottom line in the third quarter. Further, production delays and service delivery issues may persist. Moreover, the impact of any adverse currency fluctuation cannot be ignored.
Although the company has been on track with strategic pricing and savings initiatives, it is yet to be seen how these efforts have pared the aforementioned challenges when third-quarter numbers are reported.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mondelez this season. The combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Mondelez has a Zacks Rank #3, its Earnings ESP of -0.99% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination to post an earnings beat:
Church & Dwight (CHD - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conagra Brands (CAG - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>