Packaged snacks company Mondelez (NASDAQ: MDLZ) will be announcing earnings results this Tuesday after the bell. Here’s what to look for.
Mondelez beat analysts’ revenue expectations last quarter, reporting revenues of $10.5 billion, up 9.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ revenue estimates but 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, the market is expecting Mondelez’s revenue to grow 5.1% year on year, improving from its flat revenue in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Mondelez has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Mondelez’s peers in the shelf-stable food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lamb Weston delivered year-on-year revenue growth of 2.9%, beating analysts’ expectations by 5.2%, and McCormick reported revenues up 16.7%, topping estimates by 5.1%. Lamb Weston traded down 6.9% following the results while McCormick was also down 9.9%.
Read our full analysis of Lamb Weston’s results here and McCormick’s results here.
There has been positive sentiment among investors in the shelf-stable food segment, with share prices up 4.3% on average over the last month. Mondelez is down 1.2% during the same time and is heading into earnings with an average analyst price target of $66.32 (compared to the current share price of $57.57).
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