Packaged snacks company Mondelez (NASDAQ: MDLZ) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.
Mondelez met analysts’ revenue expectations last quarter, reporting revenues of $9.74 billion, up 5.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Is Mondelez a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mondelez’s revenue to grow 7.3% year on year to $10.31 billion, improving from the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mondelez has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Mondelez’s peers in the shelf-stable food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Simply Good Foods posted flat year-on-year revenue, beating analysts’ expectations by 1.2%, and Conagra reported a revenue decline of 6.8%, in line with consensus estimates. Simply Good Foods traded up 10.5% following the results while Conagra was down 3%.
Read our full analysis of Simply Good Foods’s results here and Conagra’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 8.7% on average over the last month. Mondelez is up 8.8% during the same time and is heading into earnings with an average analyst price target of $67.02 (compared to the current share price of $58.74).
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