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Factors Setting the Tone for Mondelez's (MDLZ) Q1 Earnings

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Mondelez International, Inc. (MDLZ - Free Report) is set to release first-quarter 2020 results on Apr 28. The company delivered a positive earnings surprise of 1.7% in the last reported quarter. Further, it has a trailing four-quarter positive earnings surprise of 3.3%, on average.

The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 65 cents per share, which suggests no change from the year-ago quarter’s reported figure. The projection has remained unchanged in the past 30 days. The consensus mark for revenues is pegged at $6,528 million, which indicates a drop of 0.2% from the prior-year quarter’s figure.

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 have been aiding Mondelez’s top line. In its last earnings call, management highlighted that they are optimistic about its product pipeline for the first quarter. Also, strategic pricing efforts have been fueling the company’s organic sales. Apart from these, Mondelez’s saving efforts bode well.

However, Mondelez has been struggling with higher overhead expenses. Further, it has been witnessing margin pressure thanks to transition hurdles in Brazil, increased inflation in Argentina as well as weakness in powdered beverages. Also, the impact of adverse currency fluctuation cannot be ignored.

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for Mondelez this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mondelez carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.66% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +21.06% and a Zacks Rank #2.

Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +3.56% and a Zacks Rank of 2.

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