Core Viewpoint - Mondelez (MDLZ) reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share, and down from $0.84 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -1.52%, with the company previously expected to post earnings of $0.85 per share but actually reporting $0.99 per share in the prior quarter, resulting in a surprise of 16.47% [2] - Mondelez's revenues for the quarter ended December 2024 were $9.6 billion, missing the Zacks Consensus Estimate by 0.91%, compared to $9.31 billion in the same quarter last year [3] - Over the last four quarters, Mondelez has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2][3] Stock Performance and Outlook - Mondelez shares have declined approximately 3.9% since the beginning of the year, while the S&P 500 has gained 1.9% [4] - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $9.47 billion, and for the current fiscal year, it is $3.25 on revenues of $37.55 billion [8] Industry Context - The Food - Miscellaneous industry, to which Mondelez belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]

Financial Performance - FY'24 net revenues increased by 1.2% to approximately $36.44 billion, with organic net revenue growth of 4.3%[4] - FY'24 diluted EPS declined by 5.5% to $3.42, while adjusted EPS on a constant currency basis increased by 13.0% to $3.36[5] - FY'24 gross profit increased by $493 million, with a gross profit margin of 39.1%, up 90 basis points year-over-year[7] - Operating income for FY'24 was $6.345 billion, with an operating income margin of 17.4%, up 210 basis points[7] - In Q4 2024, net revenues increased by 3.1%, with organic net revenue growth of 5.2%[9] - Q4 2024 diluted EPS was $1.30, up 85.7%, primarily due to favorable changes in mark-to-market impacts from derivatives[12] - For the three months ended December 31, 2024, net revenues increased to $9,604 million, up from $9,314 million in the same period of 2023, representing a growth of 3.1%[25] - Gross profit for the twelve months ended December 31, 2024, was $14,257 million, compared to $13,764 million in 2023, reflecting a gross profit margin increase from 38.2% to 39.1%[25] - Operating income for the three months ended December 31, 2024, rose to $1,611 million, a significant increase from $1,193 million in the prior year, resulting in an operating income margin of 16.8%[25] - Net earnings attributable to Mondelēz International for the twelve months ended December 31, 2024, were $4,611 million, compared to $4,959 million in 2023, indicating a decrease of 7%[25] Cash Flow and Shareholder Returns - FY'24 cash provided by operating activities was $4.9 billion, and free cash flow was $3.5 billion[1] - The company returned $4.7 billion to shareholders through cash dividends and share repurchases in FY'24[9] - Net cash provided by operating activities increased to $4,910 million in 2024, compared to $4,714 million in 2023, reflecting a growth of about 4%[31] - The company reported net cash used in financing activities of $5,780 million in 2024, a decrease from $7,558 million in 2023, showing an improvement of about 24%[31] Assets and Liabilities - Total assets decreased to $68,497 million as of December 31, 2024, from $71,391 million a year earlier, a decline of 4.1%[27] - Total liabilities decreased to $41,539 million as of December 31, 2024, compared to $43,025 million in 2023, reflecting a reduction of 3.4%[27] - Cash and cash equivalents decreased to $1,351 million as of December 31, 2024, down from $1,810 million in 2023, a decrease of 25.3%[27] - Total debt decreased to $17,749 million as of December 31, 2024, from $19,408 million in 2023, a reduction of 8.5%[27] Acquisitions and Divestitures - The company acquired Evirth (Shanghai) Industrial Co., Ltd. on November 1, 2024, adding incremental net revenues of $72 million and operating income of $10 million for the three and twelve months ended December 31, 2024[47] - The acquisition of Grupo Bimbo's confectionery business, Ricolino, resulted in acquisition integration costs of $21 million for the twelve months ended December 31, 2024[48] - The acquisition of Clif Bar & Company led to income of $87 million in the three months ended December 31, 2024, with expenses of $72 million in the three months ended December 31, 2023[49] - The company recorded a pre-tax gain of $108 million from the sale of its developed market gum business, which generated cash proceeds of $1.4 billion[46] - The divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $484 million for the twelve months ended December 31, 2024[46] Currency and Foreign Exchange Impact - The company anticipates a negative $0.12 impact to adjusted EPS in 2025 due to currency translation[11] - Unfavorable currency-related items impacted the company's Organic Net Revenue by $242 million (2.6 percentage points) due to unfavorable currency translation rate changes of $427 million (4.6 percentage points) for the three months ended December 31, 2024[81] - The company recorded unfavorable currency-related items of $191 million impacting Adjusted Operating Income for the twelve months ended December 31, 2024, primarily due to unfavorable currency translation rate changes of $460 million[81] - The company reported a total unfavorable currency-related impact of $710 million (2.0 percentage points) for the twelve months ended December 31, 2024[81] Operational Efficiency and Programs - The "Simplify to Grow Program" contributed $11 million to gross profit for Q4 2024[89] - The "Simplify to Grow Program" contributed $69 million to operating income in Q4 2024, consistent with the previous year's contribution[95] - The Simplify to Grow Program generated $149 million in operating income, with a net impact of $113 million on earnings[97] - The company plans to continue focusing on market expansion and new product development to drive future growth[104] Tax and Effective Tax Rate - The effective tax rate for the three months ended December 31, 2024, was 13.5%, down from 22.1% in the same period of 2023[25] - The effective tax rate for the reported earnings was 13.5% for Q4 2024, down from 22.1% in Q4 2023[95] Earnings and EPS Analysis - Basic earnings per share attributable to Mondelēz International for the three months ended December 31, 2024, was $1.31, compared to $0.70 in the same period of 2023, representing an increase of 87.1%[25] - Adjusted EPS for the twelve months ended December 31, 2024, was negatively impacted by unfavorable currency-related items of $0.12, driven by unfavorable currency translation rate changes of $0.32[81] - Adjusted EPS (Non-GAAP) for the twelve months ended December 31, 2024, was $3.36, reflecting a 9.1% increase from $3.08 in 2023[101] - The diluted earnings per share (EPS) was reported at $0.82, with shares outstanding totaling 1,364 million[96] - Diluted EPS attributable to Mondelēz International (GAAP) for Q4 2024 was $1.30, an increase of 85.7% from $0.70 in Q4 2023[99]

Core Insights - Mondelēz International reported a 1.2% increase in net revenues for FY'24, with organic net revenue growth of 4.3% despite a volume/mix decline of 1.0% [1][5] - The diluted EPS for FY'24 decreased by 5.5% to $3.42, while adjusted EPS on a constant currency basis increased by 13.0% to $3.36 [1][17] - The company generated $4.9 billion in cash from operating activities and returned $4.7 billion to shareholders [1][17] Financial Performance - Net revenues for Q4 2024 were $9.604 billion, reflecting a 3.1% increase compared to the previous year, driven by organic net revenue growth of 5.2% [3][21] - Gross profit for FY'24 increased by $493 million, with a gross profit margin of 39.1%, up 90 basis points year-over-year [5][21] - Operating income for FY'24 rose by $843 million, resulting in an operating income margin of 17.4%, an increase of 210 basis points [5][21] Regional Performance - In Q4 2024, Latin America experienced a 7.2% decline in net revenues, while Asia, Middle East & Africa saw a 9.9% increase [3] - For FY'24, North America reported a 1.5% decline in net revenues, while Europe experienced a 3.5% increase [3] 2025 Outlook - The company anticipates organic net revenue growth of approximately 5% for FY'25, but expects adjusted EPS to decline by about 10% on a constant currency basis due to cocoa cost inflation [9][10] - Currency translation is estimated to negatively impact 2025 net revenue growth by approximately 2.5% and adjusted EPS by $0.12 [9][10] Strategic Focus - The CEO emphasized the company's commitment to executing its long-term growth strategy and adapting to cocoa cost inflation challenges [2] - The company aims to maintain agility in navigating the current operating environment while focusing on top- and bottom-line growth [2]

Core Viewpoint - Analysts project Mondelez (MDLZ) will report quarterly earnings of $0.67 per share, a decline of 20.2% year over year, with revenues expected to reach $9.69 billion, an increase of 4.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 2.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Geographic Revenue- North America' will reach $2.85 billion, reflecting a change of +2.6% year over year [5]. - 'Geographic Revenue- Europe' is projected to be $3.80 billion, indicating a change of +7.4% from the previous year [5]. - 'Geographic Revenue- AMEA' is expected to be $1.84 billion, showing a change of +6.2% year over year [5]. - 'Geographic Revenue- Latin America' is forecasted at $1.18 billion, indicating a decline of -6.6% from the prior year [6]. Operating Income Estimates - 'Operating Income- AMEA- Non-GAAP' is projected to reach $238.65 million, down from $246 million in the same quarter last year [6]. - 'Operating Income- Europe- Non-GAAP' is expected to be $550.97 million, compared to $643 million in the previous year [7]. - 'Operating Income- North America- Non-GAAP' is forecasted at $411.21 million, down from $505 million year over year [7]. - 'Operating Income- Latin America- Non-GAAP' is estimated at $115.01 million, compared to $159 million in the same quarter last year [8]. Stock Performance - Mondelez shares have decreased by -1.8% in the past month, contrasting with the Zacks S&P 500 composite's increase of +2.9% [9]. - With a Zacks Rank 4 (Sell), MDLZ is expected to underperform the overall market in the near term [9].

Core Insights - Mondelez International, Inc. (MDLZ) is expected to report revenue growth of 4.1% year-over-year, with a consensus estimate of $9.69 billion for Q4 2024 [1] - The earnings per share (EPS) estimate has decreased by 21.4% to 66 cents, reflecting a decline from the previous year [2] - The company has shown resilience in its core categories of chocolate and biscuits, which are expected to grow by 6.4% and 5.2% respectively in Q4 [3][4] Revenue and Pricing Strategies - Mondelez's revenue growth management strategies, including tailored pack sizes and diverse price points, have helped maintain consumer loyalty and market share [3] - The company anticipates a 4.6% increase in pricing for Q4, with organic revenue growth projected at 5.6% [5] Cost Pressures and Earnings Outlook - Significant input cost pressures are expected due to high cocoa prices, which may have peaked in Q4, potentially impacting earnings negatively [6] - The current model does not predict an earnings beat for Mondelez, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -3.50% [7]

Core Insights - Mondelēz International, Inc. will present at the annual Consumer Analyst Group of New York (CAGNY) Conference on February 18, 2025, at 2:00 p.m. ET [1] - The company reported net revenues of approximately $36 billion for the year 2023, indicating a strong position in the global snacking market [2] Company Overview - Mondelēz International operates in over 150 countries, focusing on empowering people to snack right [2] - The company features a portfolio of iconic brands including Oreo, Ritz, LU, Clif Bar, Tate's Bake Shop, Cadbury Dairy Milk, Milka, and Toblerone [2] - Mondelēz is a member of the Standard and Poor's 500, Nasdaq 100, and Dow Jones Sustainability Index, highlighting its significant market presence and commitment to sustainability [2]

Core Viewpoint - Mondelez is expected to report a year-over-year decline in earnings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.66 per share, reflecting a -21.4% change year-over-year, while revenues are projected at $9.69 billion, an increase of 4.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.69% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -3.50%, suggesting that analysts have lowered their expectations for Mondelez's earnings [11]. Historical Performance - Mondelez has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +16.47% surprise in the most recent quarter [12][13]. Stock Movement Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment and stock performance [14][16].

Core Insights - The OREO brand is launching a Limited Edition Post Malone OREO Cookies, featuring a unique flavor combination and design elements inspired by the artist [1][3][4] - The cookies include a swirled creme of salted caramel and shortbread flavor, sandwiched between chocolate and golden OREO cookies [2][3] - The collaboration aims to engage fans through a digital experience where they can create their own cookie flavor combinations based on their musical preferences [4][5] Product Details - Each cookie pack features one of nine unique embossments inspired by Post Malone's artistic world [3] - The cookies will be available for presale starting January 27, 2025, and will roll out to retailers on February 3, 2025, for a limited time [6] Company Strategy - Mondelēz International emphasizes flavor innovations and collaborations as a strategy to maintain relevance in the snack market [4] - The collaboration with Post Malone is seen as a way to raise the bar and engage fans in new ways [4] Market Presence - OREO is a leading cookie brand, with over 60 billion cookies sold annually, including more than 20 billion in the U.S. [9] - Mondelēz International reported net revenues of approximately $36 billion in 2023, showcasing its strong position in the global snack market [10]

Financial Results Announcement - Mondelēz International, Inc. will release its fourth quarter 2024 financial results on February 4, 2025, at 4:05 p.m. ET [1] - A conference call will be hosted on the same day at 5:00 p.m. ET [1] Participation Details - Investors and analysts can participate via phone by calling 800-225-9448 from the United States and 203-518-9708 from other locations [2] - A listen-only webcast will be available on the company's website [2] - A replay of the conference call will be available until February 11, 2025 [2] Company Overview - Mondelēz International, Inc. reported net revenues of approximately $36 billion in 2023 [3] - The company operates in over 150 countries and offers iconic brands such as Oreo, Ritz, and Cadbury Dairy Milk [3] - Mondelēz is a member of the Standard and Poor's 500, Nasdaq 100, and Dow Jones Sustainability Index [3]

Economic Overview - The U.S. economy is demonstrating greater resilience than anticipated, leading to an increase in government bond yields [1] - Rising risk-free yields are expected to influence investment strategies and market dynamics [1] Investment Sentiment - The beginning of 2025 is marked by uncertainty among investors due to economic conditions [1] - The current economic climate may prompt investors to reassess their portfolios and strategies in light of changing yields [1]