Mondelez International Earnings: Here’s Why Investors are Not Excited Now

Mondelez International (NASDAQ:MDLZ) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4%.

Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.36 in the quarter versus EPS of $0.57 in the year-earlier quarter.

Revenue: Decreased 35.36% to $9.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.38. It missed the average revenue estimate of $9.69 billion.

Quoting Management: “This was a transformational year for our company,” said Irene Rosenfeld, Chairman and CEO. “We successfully completed the spin-off of Kraft Foods Group, resulting in a significant increase in shareholder value, and delivered solid top-line growth and higher Adjusted Operating Income margins across all geographies. We remain relentlessly focused on driving our global snacking platforms and Power Brands while leveraging our strong routes-to-market to deliver on the exciting promise of our new growth company.”

Key Stats (on next page)…

Revenue decreased 26.45% from $12.91 billion in the previous quarter. EPS decreased 2.7% from $0.37 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.35 and has not changed. For the current year, the average estimate has moved down from a profit of $1.41 to a profit of $1.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)