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Mondelez's (MDLZ) Q4 Earnings Upcoming: Factors to Consider

Mondelez International, Inc. MDLZ is likely to register a top-line increase from the respective year-ago fiscal quarter’s reading when it reports fourth-quarter 2022 earnings on Jan 31. The Zacks Consensus Estimate for quarterly revenues is pegged at $8,332 million, suggesting a rise of 8.8% from the prior-year fiscal quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has been stable in the past 30 days at 71 cents per share. This figure remains in line with the year-earlier quarter.

The snack food and beverage product company has a trailing four-quarter earnings surprise of 6.4%, on average. MDLZ delivered an earnings surprise of 8.8% in the last reported quarter.

Factors to Consider

Mondelez has been gaining from strength in emerging markets and its focus on strengthening the snacking category. The company has been keen on expanding its business through acquisitions. Contributions from the buyouts of Clif Bar (August 2022) and Chipita S.A. (January 2022) are likely to aid Mondelez’s fourth-quarter sales results.

The company has been expanding its snacking category in particular. As consumers prefer snacking over traditional meals, the company’s core categories — chocolates and biscuits — have historically depicted resilience to economic downturns and pricing actions. Consumers in developed countries consider chocolates and biscuits as affordable indulgences and one of the most-valued snacking products.

However, Mondelez has been battling cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. The company is also navigating through supply-chain bottlenecks.  Volatile currency movements are also an area of concern.

On its third-quarter 2022 earnings call, management stated that currency movements are likely to negatively impact net revenues by nearly 6.4% and adjusted EPS by 26 cents in 2022. These headwinds might have hurt the company’s earnings results in the quarter to be reported.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Mondelez has a Zacks Rank of 2 and an Earnings ESP of -1.58%.

Stocks With the Favorable Combination

Here are some companies which according to our model have the right combination of elements to beat earnings this season.

The Kraft Heinz Company KHC currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.1 billion, indicating a rise of almost 6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.

Kellogg Company K currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top-line and bottom-line improvement when it reports fourth-quarter 2022 numbers.

The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.

The Hershey Company HSY currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers.

The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, calling for growth of 10.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.78 suggests a 5.3% increase from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.9%, on average.

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

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