Mondelez (MDLZ) Misses Q4 Earnings; Core Sales Improve
Mondelez International, Inc. MDLZ is a global snacks powerhouse with brands spanning across five fast-growing snacks categories — biscuits, chocolate, gum and candy, beverages and cheese & grocery. Its portfolio includes popular names like Oreo, Nabisco and LU biscuits; Milka, Cadbury Dairy Milk and Cadbury chocolates; Trident gum; and Tang powdered beverage.
Though the company has been consistently improving margins through cost cuts and productivity gains, its top line has been soft due to category weakness and volume erosion in response to the significant pricing actions and increased competitive pressures. However, Mondelez’s organic sales trends improved in 2015 backed by marketing support funded by cost savings from the restructuring plan.
Investors should also note that earnings estimate for MDLZ has been moving downward for some time. However, MDLZ has a solid earnings history. The global snacks company has posted positive earnings surprise in the past four straight quarters, with an average negative surprise of 12.08%.
Currently, MDLZ has a Zacks Rank #3 (Hold), but that could definitely change following Mondelez’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MDLZ missed on earnings. Our consensus earnings estimate called for EPS of $0.49 /share, and the company reported EPS of $0.46 instead. Investors should note that these figures take out stock option expenses.
Revenues: MDLZ reported revenues of $7.36 billion. This missed the consensus estimate of $7.45 billion.
Key Stats to Note: Organic revenues grew 4.7%, better than 3.7% in the third quarter. Volumes/ mix were down 3.1% while pricing increased 7.8% year over year.
Stock Price: Shares rose 0.07% in pre-market trading.
Check back later for our full write up on this MDLZ earnings report later.
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