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Things to Note as Mondelez (MDLZ) Lines Up for Q2 Earnings

·5 min read

Mondelez International, Inc. MDLZ is likely to register a top-line growth when it reports second-quarter 2022 earnings on Jul 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $6,780 million, suggesting a rise of 2.1.% from the prior-year quarter’s reported figure.

However, the Zacks Consensus Estimate for quarterly earnings has dropped by a penny to 63 cents in the past seven days, suggesting a decrease of 4.6% from the figure reported in the prior-year quarter. This snack food and beverage products company has a trailing four-quarter earnings surprise of 3.4%, on average. MDLZ delivered an earnings surprise of 13.5% in the last reported quarter.

Mondelez International, Inc. Price, Consensus and EPS Surprise

Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. Price, Consensus and EPS Surprise

Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote

Things Factors to Note

Mondelez has been battling cost inflation and supply-chain headwinds for a while now. These hurdles got exacerbated due to the Ukraine war. The company is seeing input cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. It is also navigating through supply-chain bottlenecks due to labor shortages at third parties. Management anticipates input cost inflation in the low- double-digit range for 2022, which raises concerns for the quarter under review. Investments to support brands and other growth-oriented investments may have also impacted profits.

Apart from this, volatile currency movements are a headwind.  On its first-quarter 2022 earnings call, management stated that in 2022 currency movements are likely to negatively impact net revenues by nearly 3% and adjusted earnings per shareEPS by 17 cents in 2022. These again are likely tomay have affected results in the quarter under review.

That said, management has been undertaking necessary pricing, revenue growth management, cost containment and business simplification actions to counter the prevalent cost inflation.  Gains from buyouts have also been a driver for Mondelez. Additionally, strength in emerging market operations hasve been aiding. In the first quarter of 2022, revenues from the emerging markets increased by 15.6% to $2,964 million while rising 16.5% on an organic basis. The cContinuation of such trends bodes well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for MDLZ this time. 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, which is not the case here.

Mondelez carries a Zacks Rank #4 (Sell) and an Earnings ESP of -2.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

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

Corteva CTVA currently has an Earnings ESP of +8.12% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.46 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 4.3% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.4% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

Archer Daniels ADM currently has an Earnings ESP of +2.59% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for ADM’s quarterly earnings has moved up by almost 3% in the past 30 days to $1.74 per share. The consensus mark indicates 30.8% growth from the year-ago quarter’s reported number.

Archer Daniels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.3 billion, which suggests a rise of 10.2% from the figure reported in the prior-year quarter. ADM delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

Tyson Foods TSN currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The consensus mark for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.

The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Corteva, Inc. (CTVA) : Free Stock Analysis Report
 
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