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Factors to Consider Ahead of Mondelez's (MDLZ) Q1 Earnings

Mondelez International, Inc. MDLZ is likely to register a top-line growth when it reports first-quarter 2023 earnings on Apr 27. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.4 billion, suggesting a rise of 8.6% from the prior-year fiscal quarter’s reported figure.

However, Mondelez’s bottom line is likely to decline year over year in the first quarter. The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at 80 cents per share. This figure suggests a decline of 4.8% from the prior-year fiscal quarter’s reported figure.

We expect first-quarter net sales to be up 3.3% year over year to $8,016.6 million. The bottom line will likely decline 6.8% to 78 cents a share.

The snack food and beverage product company has a trailing four-quarter earnings surprise of 7.5%, on average. MDLZ delivered an earnings surprise of 2.8% in the last reported quarter.

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

 

Things To Consider

Mondelez is on track with undertaking buyouts to augment portfolio strength and boost revenues. The company is expanding its snacking category in particular, which has been aiding growth. In this regard, management is focused on strengthening its core chocolate and biscuits categories, which have considerable scope for growth. Mondelez is encouraged by the underlying emerging market strength. We believe that the continuation of these factors might have been an upside in the quarter to be reported.

Mondelez is battling cost inflation, which has been exerting pressure on its gross margin performance. The company is battling challenges related to energy crisis, recession-related worries in Europe and supply-chain uncertainty. In its last earnings call, management highlighted that it anticipates lower margins due to reduced volumes in Europe during the first quarter of 2023.

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 carries a Zacks Rank #3 and has an Earnings ESP of +1.06%.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.

Altria Group MO currently has an Earnings ESP of +1.93% and a Zacks Rank of 3. The company is likely to register an increase in the top and the bottom line when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at nearly $5 billion, suggesting a rise of 3.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MO’s quarterly EPS of $1.19 suggests a 6.3% increase from the year-ago quarter. Altria has a trailing four-quarter earnings surprise of 0.3%, on average.

Sysco Corporation SYY currently has an Earnings ESP of +3.07% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 million, which suggests a jump of 10.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Sysco’s bottom line has remained unchanged at 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure. Sysco has a trailing four-quarter earnings surprise of 7.1%, on average.

The Hershey Company HSY currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. HSY is likely to register top-and bottom-line growth when it reports first-quarter 2023 results.

The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, suggesting a rise of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the last seven days to $2.67 per share, suggesting growth of 5.5% from the figure reported in the prior-year quarter. HSY has a trailing four-quarter earnings surprise of 11.3%, on average.

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

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