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Mondelez beats on both the top and bottom lines in Q3

Mondelez reported Q3 EPS of $0.63, $0.01 better than the analyst estimate of $0.62. Revenue for the quarter came in at $6.67 billion versus the consensus estimate of $6.48 billion.

Video Transcript


- Welcome back. We have some breaking news, here. After hours, Mondelez International is out with its earnings report. Shares are moving slightly lower after hours, off just around 2/10 of a percent. Jared [? Bilcry ?] has those numbers for us. Jared?

- Yeah, we saw the top-line beat estimates coming in at a revenue that is at 6.67 billion. Estimate was for 6 and 1/2 billion, and that's up 4.9% year over year. Now, adjusted EPS, exactly at consensus here, $0.63. That's versus $0.64 a year ago. And that Wall Street estimate was $0.63. So in-line, right there.

Adjusted operating margin coming in better than expected, 17 and 1/2% versus 16 and an 8-- 16.8%, and that was actually one year ago. And organic revenue, that is up 4.4% versus estimates of 2 and 1/2%. It was up 4%-- or 4.2% a year ago, too.

We did get some guidance for them-- for them-- from them. We're seeing 2020 organic net revenue growth of 3 and 1/2% and 2020 adjusted EPS growth of 5% plus. And that takes away the effects considerations. Also saying that they returned $400 million of capital to shareholders in the quarter through dividends. And looking at the stock here, we can see down about 1/3 per-- of a percent in the aftermarket, here.

And looking over the last six months, we can see they're up marginally, but largely trading sideways. And they just broke through this support recently. Year to date, they are up-- no, excuse me. They're roughly flat, just down about 1.3% for the food maker. So beat on the top line, and on the bottom line, in line with expectations. Seana?

- Hey, Jared. It's Adam. Real quick question for you. Why would the market, after hours, at least, not reward this performance? I mean, before the pandemic, is it the fact that people were turning away from these kinds of stocks?

- Well, I think a lot of it just has to do with the zeitgeist in the current earnings environment, that it really takes a lot to get rewarded. We've seen the biggest beats on record. We're likely to close out the quarter with the biggest beats on record. And we still haven't seen that outperformance by a lot of the stocks. So unless you're really beating big, sometimes you're just not rewarded in the current market environment.