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Factors to Consider Before Mondelez's (MDLZ) Q4 Earnings

·5-min read

Mondelez International, Inc. MDLZ is likely to register growth in the top and the bottom line from the respective year-ago reported figures, when it reports fourth-quarter 2021 earnings on Jan 27. The Zacks Consensus Estimate for revenues is pegged at $7,541 million, suggesting a rise of 3.3% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has been stable over the past 30 days at 72 cents per share, indicating an increase of 7.5% from the figure reported in the prior-year period. In the last reported quarter, MDLZ’s earnings outperformed the Zacks Consensus Estimate by 1.4%. Mondelez has a trailing four-quarter earnings surprise of 3.3%, on average.

For 2021, the consensus estimate for revenues stands at $28.6 billion, indicating an improvement of 7.6% from the year-ago reported figure. The Zacks Consensus Estimate for earnings has moved a penny south over the past seven days to $2.88, suggesting an improvement of 11% from the prior-year reading.

Key Factors to Note

Mondelez is gaining from continued demand for the categories and brands in both the emerging and developed markets. MDLZ’s core categories and in-home consumption portfolio have been impressive so far. This apart, Mondelez is gaining on buyouts and alliances. Higher sales from the Hu, Grenade and Gourmet Food buyouts are steadily adding to sales. Additionally, favorable volumes and pricing might have contributed to revenue growth during the fourth quarter.

Consumers’ desire for comfort and indulgence is consistently rising due to the pandemic-led elevated at-home consumption, which is working well for Mondelez. On its last earnings call, management had projected organic net revenues to increase 4.5% in 2021. MDLZ anticipated adjusted EPS to grow in high-single digits at constant currency.

On the flip side, management had feared persistence of transportation and labor inflation as well as supply-chain pressure in the North American region during the fourth quarter. Mondelez has been witnessing cost inflation globally, especially for transportation and packaging for a while.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Mondelez this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mondelez International, Inc. Price and EPS Surprise

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

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

Mondelez currently has a Zacks Rank #3 and an Earnings ESP of +1.57%.

More Stocks With Favorable Combination

Here are some other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this season:

Archer Daniels ADM currently has an Earnings ESP of +7.30% and a Zacks Rank of 3. ADM is expected to register top and bottom-line growth when it reports fourth-quarter 2021 earnings. The Zacks Consensus Estimate for ADM’s quarterly revenues is pegged at $20.4 billion, suggesting growth of 13.3% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Archer Daniels’ quarterly earnings has moved 10.6% up in the past 30 days to $1.23 per share, suggesting 12.4% growth from the year-ago quarter’s reported number. ADM delivered an earnings beat of 23.4%, on average, in the trailing four quarters.

Coty COTY has an Earnings ESP of +37.14% and is currently Zacks #3 Ranked. COTY is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coty’s bottom line has moved a penny up in the past seven days to 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. COTY delivered an earnings beat of 66.4%, on average, in the trailing four quarters.

Hershey HSY has an Earnings ESP of +0.90% and a Zacks Rank of 3 at present. HSY is expected to witness a rise in the top and the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at nearly $2,258 million, suggesting a rise of 3.4% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Hershey’s quarterly earnings has gone a penny up in the past seven days to $1.63 per share, suggesting 9.4% growth from the year-ago quarter’s reported number. HSY delivered an earnings beat of 4.4%, on average, in the trailing four quarters.

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


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Hershey Company The (HSY) : Free Stock Analysis Report

Archer Daniels Midland Company (ADM) : Free Stock Analysis Report

Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report

Coty (COTY) : Free Stock Analysis Report

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