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What's in the Offing for Mondelez (MDLZ) in Q1 Earnings?

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Mondelez International, Inc. MDLZ is likely to witness a year-over-year increase in the top line when it reports first-quarter 2022 earnings on Apr 26. The Zacks Consensus Estimate for revenues is pegged at $7,487 million, suggesting a rise of 3.4% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has declined by a penny over the past 30 days to 74 cents per share. This indicates a decline of 3.9% from the figure reported in the prior-year period. Mondelez has a trailing four-quarter earnings surprise of 2.9%, on average. This snack food and beverage products company delivered a negative earnings surprise of 1.4% 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

Key Factors to Consider

Mondelez has been benefiting from its prudent buyouts and high at-home consumption. In January 2022, the company acquired Chipita S.A.– a major producer of sweet and salty snacks in Central and Eastern Europe. This is likely to have contributed to MDLZ’s results in the quarter under review. Apart from this, the Hu Master, Grenade and Gourmet Food buyouts (all concluded in 2021) contributed to the company’s top line in the fourth quarter of 2021.

Mondelez’s underlying emerging market strength is also encouraging. The company is boosting its presence in the emerging markets as evident from the addition of its distribution in 300,000 and 200,000 more respective stores in China and India in 2021. On its last earnings call, management remained optimistic about the emerging markets outlook for the near and the long term despite some pandemic-related hurdles in a few countries.

On its fourth-quarter 2021 call, management also said that it expects at-home consumption to remain elevated, given the recent spike in Omicron cases. This, along with consumers’ increased indulgence in comfort foods, bodes well for the company’s core biscuits and chocolate categories. For 2022, management projected organic net revenues of more than 3% and a high single-digit increase in adjusted earnings per share or EPS at constant currency or cc. Pricing and volumes are likely to be major top-line drivers. These factors also bode well for the quarter under review.

However, Mondelez is seeing cost inflation globally, especially for transportation, packaging, edible oils and dairy. The company is also navigating through supply-chain bottlenecks due to labor shortages at third parties. On its fourth-quarter 2021 earnings call, management guided for another year of material cost inflation, which is likely to rise in the high single digits. Though the company is undertaking robust pricing efforts, some margin pressure is still expected in the first quarter and partially in the second quarter. Management specifically expects greater supply-chain hurdles in North America in the first quarter associated with third parties and lower inventory stemming from the last year’s strike.

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 currently has a Zacks Rank #3 and an Earnings ESP of -1.24%. 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 that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Hershey HSY has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.

Inter Parfums IPAR has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.

The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.

Church & Dwight Co., Inc. CHD has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.

The Zacks Consensus Estimate for Church & Dwight’s quarterly EPS of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.

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


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Hershey Company The (HSY) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

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