Core Viewpoint - Mondelez International, Inc. is positioned for potential growth with a new price target set by Wells Fargo, despite recent stock fluctuations and a decline on the day of the announcement [2][3][5]. Company Overview - Mondelez is a global leader in the snack food industry, operating in over 150 countries and known for brands like Oreo, Cadbury, and Toblerone [1]. - The company focuses on various product categories including biscuits, chocolate, gum, candy, and powdered beverages, competing with major players like Nestlé and Mars, Inc. [1]. Financial Performance - Wells Fargo has set a price target of $72 for Mondelez, indicating a potential increase of approximately 19.58% from its current trading price of $60.21 [2][6]. - During the Q3 2025 earnings call, key executives discussed the company's financial performance and strategic direction, attended by analysts from major financial institutions [2][3][6]. - Despite the optimistic price target, Mondelez's stock experienced a decrease of 2.35% on the day of the announcement, dropping $1.45 to a low of $60.21 [3][6]. Market Metrics - Mondelez's stock has fluctuated over the past year, with a high of $71.15 and a low of $53.95 [4]. - The company's market capitalization is approximately $77.91 billion, reflecting its significant presence in the global snack food market [4][6]. - The trading volume for the day reached 14.9 million shares, indicating active investor interest [4][6].

Summary of Key Points Core Viewpoint - U.S. stock futures showed mixed results, with notable declines in certain stocks following disappointing earnings guidance and results from various companies [1][2]. Company-Specific Summaries - Mondelez International Inc lowered its FY2025 adjusted EPS guidance from $3.02 to $2.86, leading to a 5.8% drop in its share price to $56.74 in pre-market trading [2]. - Mondelez reported quarterly earnings of 73 cents per share, surpassing the analyst consensus estimate of 71 cents, and quarterly sales of $9.744 billion, exceeding the consensus estimate of $9.713 billion [1]. - Stride Inc experienced a significant decline of 36.4% to $97.69 in pre-market trading after providing second-quarter sales guidance below analyst estimates [4]. - Varonis Systems Inc shares fell 30.1% to $44.06 after reporting third-quarter revenue below estimates and offering fourth-quarter guidance that was also below expectations [4]. - Akebia Therapeutics Inc's shares dropped 29.9% to $2.17 after announcing it would not initiate the VALOR trial due to a lack of alignment with the FDA on trial design [4]. - Inventiva's shares dipped 15.2% to $4.47 after a previous decline of 24% on Tuesday [4]. - DBV Technologies SA saw a 10.7% decline to $13.90 following its third-quarter results [4]. - Caesars Entertainment Inc reported third-quarter earnings and revenue below estimates, resulting in an 8.9% drop in its share price to $20.13 [4]. - Enphase Energy Inc's shares fell 8.5% to $33.59 after providing fourth-quarter sales guidance below analyst estimates [4]. - Ryerson Holding Corp declined 7.1% to $21.90 following the announcement of a merger agreement with Olympic Steel [4]. - Modine Manufacturing Co's shares dipped 6.3% to $151.83 after its second-quarter results [4]. - Nokia Oyj's shares declined 5.2% to $7.37 in pre-market trading [4].

Summary of Key Points Core Viewpoint - U.S. stock futures showed mixed results, with a notable decline in Dow futures, while Mondelez International faced a significant drop in share price following a reduction in FY2025 earnings guidance [1][2]. Mondelez International - Mondelez International reported quarterly earnings of 73 cents per share, surpassing the analyst consensus estimate of 71 cents per share [1]. - The company achieved quarterly sales of $9.744 billion, exceeding the analyst consensus estimate of $9.713 billion [1]. - Mondelez cut its FY2025 adjusted EPS guidance from $3.02 to $2.86, leading to a 5.8% decline in its share price to $56.74 in pre-market trading [2]. Other Companies - Stride Inc experienced a 36.4% drop in share price to $97.69 after providing second-quarter sales guidance below analyst estimates [4]. - Varonis Systems Inc saw a 30.1% decline to $44.06 following third-quarter revenue that fell short of estimates and a disappointing fourth-quarter guidance [4]. - Akebia Therapeutics Inc's shares fell 29.9% to $2.17 after announcing it would not initiate the VALOR trial due to FDA alignment issues [4]. - Inventiva's shares dipped 15.2% to $4.47 after a previous 24% drop [4]. - DBV Technologies SA saw a 10.7% decline to $13.90 following third-quarter results [4]. - Caesars Entertainment Inc's shares fell 8.9% to $20.13 after reporting third-quarter earnings and revenue below estimates [4]. - Enphase Energy Inc's shares dropped 8.5% to $33.59 after providing fourth-quarter sales guidance below analyst expectations [4]. - Ryerson Holding Corp declined 7.1% to $21.90 following a merger announcement with Olympic Steel [4]. - Modine Manufacturing Co dipped 6.3% to $151.83 after second-quarter results [4]. - Nokia Oyj's shares fell 5.2% to $7.37 in pre-market trading [4].

Core Insights - Mondelez International's stock fell 5.5% in pre-market trading following mixed Q3 earnings results [1] Financial Performance - Revenue for Q3 was $9.744 billion, representing a year-over-year increase of 5.9%, exceeding market expectations by $106 million [1] - Organic growth was reported at 3.4%, a decline from 5.6% in Q2, primarily due to a 4.6% decrease in volume/mix [1] - Adjusted earnings per share (EPS) were $0.73, a 23% year-over-year decline, but surpassed market expectations by $0.02 [1] - Gross margin was 30.4%, down 10 percentage points year-over-year, falling short of the market expectation of 33.1% [1] Guidance and Outlook - The company withdrew its 2025 guidance, citing high cocoa prices and transportation costs as contributing factors to the decline in Q3 earnings [1] - Full-year revenue is now expected to grow 4% on an organic basis, down from the previous forecast of 5% made in July [1] - Adjusted earnings are now anticipated to decline by 15% at constant currency, revised from the earlier estimate of a 10% decline [1]

Core Viewpoint - A federal judge dismissed a class action lawsuit against Mondelez International regarding the labeling of Clif bars as "climate neutral certified," ruling that the labels were not misleading [1][3]. Group 1: Lawsuit Details - The lawsuit was initiated by plaintiff Cynthia Salguero, who accused Mondelez of greenwashing by labeling Zbars as "climate neutral," despite the manufacturing process emitting 54,000 tons of carbon dioxide annually, equivalent to the emissions from 12,596 gasoline-powered cars [2]. - The judge, U.S. District Judge Manish Shah, found that Mondelez did not claim the Zbars were climate neutral but rather that they were certified as such, highlighting a significant distinction [3]. - The lawsuit was dismissed with prejudice, meaning it cannot be refiled, and Salguero sought unspecified damages for alleged misstatements and violations of California consumer protection laws [4]. Group 2: Legal Implications - The ruling emphasizes the importance of accurate labeling and the distinction between certification and claims made by companies regarding environmental impact [3]. - The case is officially titled Salguero v Mondelez International Inc, filed in the U.S. District Court for the Northern District of Illinois [4].

Core Insights - Mondelez International is a global leader in the snack industry, known for brands like Oreo, Cadbury, and Trident, operating in over 150 countries and focusing on various snack categories [1] - The company reported an EPS of $0.73 and revenue of approximately $9.74 billion for the quarter ending October 28, 2025, reflecting a 5.9% year-over-year revenue increase [2][4] - Mondelez has a strong track record of exceeding market expectations, surpassing consensus EPS estimates three out of the last four quarters [3] Financial Performance - The reported EPS of $0.73 exceeded the Zacks Consensus Estimate of $0.72 by 1.39%, although it decreased from $0.99 a year ago [3] - Revenue of $9.74 billion slightly surpassed the Zacks Consensus Estimate by 0.07%, marking the second time in four quarters that revenue expectations were exceeded [4] - The company maintains a P/E ratio of approximately 21.41, a price-to-sales ratio of about 2.10, and an enterprise value to sales ratio of around 2.64 [5] Strategic Focus - Mondelez's revenue growth is attributed to its strategic focus on expanding product offerings and optimizing its supply chain, despite challenges such as high cocoa prices and rising transportation costs [4] - The company competes with major food companies like Nestlé and Mars, Inc., aiming to maintain its market position through innovation and strategic acquisitions [1]

Core Insights - Mondelez International reported Q3 2025 earnings that met adjusted profit expectations but fell short on revenue, leaving investors underwhelmed [1] Financial Performance - The company's earnings met adjusted profit expectations, indicating a stable profit performance despite revenue challenges [1] - Revenue figures were below expectations, which contributed to a negative sentiment among investors [1]

Core Insights - Mondelez reported $9.74 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 5.9% and a surprise of +0.07% over the Zacks Consensus Estimate [1] - The EPS for the same period was $0.73, down from $0.99 a year ago, with an EPS surprise of +1.39% compared to the consensus estimate of $0.72 [1] Revenue Performance - North America revenue was $2.82 billion, slightly above the $2.77 billion estimate, reflecting a year-over-year decline of -0.4% [4] - Europe revenue reached $3.67 billion, slightly below the $3.68 billion estimate, but showed a significant year-over-year increase of +10.6% [4] - AMEA revenue was reported at $2.02 billion, close to the $2.04 billion estimate, with a year-over-year growth of +9% [4] - Latin America revenue stood at $1.24 billion, just below the $1.25 billion estimate, representing a year-over-year increase of +2.8% [4] Stock Performance - Mondelez shares have returned -1.6% over the past month, underperforming the Zacks S&P 500 composite, which increased by +3.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported a decline in volume in North America by 4% compared to a 2.8% average year-to-date, indicating a slowdown in the market [20] - The guidance for Q4 implies a step up in organic net revenue growth of more than 4%, with an expected improvement in EBIT growth compared to the previous year [13][46] - Cocoa prices have been a significant factor, with a 30% price increase impacting the chocolate segment, but the company expects significant improvement moving forward [5][9] Business Line Data and Key Metrics Changes - In Europe, the biscuits, cakes, pastries, and meals business are performing well with share growth and volume mix growth, while the chocolate category is generally in line with expectations despite some pressure [5][6] - The U.S. biscuit category is facing challenges, with consumers focusing on essentials and shifting towards smaller packs and promotions [20][21] - Emerging markets showed a volume decline of 4.7%, primarily affected by Argentina's hyperinflation and economic conditions, but India and Brazil are performing better with mid-single-digit and double-digit growth respectively [39][41] Market Data and Key Metrics Changes - Consumer confidence in Europe remains stable, but the U.S. market is experiencing a decline in consumer spending and basket size, affecting overall sales [5][20] - Price elasticity in Europe is currently around 0.7 to 0.8, higher than the historical range of 0.4 to 0.5, indicating a need for price adjustments in certain product lines [8][34] - Emerging markets are showing varied performance, with China experiencing low single-digit growth and Argentina significantly impacting overall volume [40][41] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to drive growth, particularly in the U.S. market [12][24] - There is a clear strategy to invest in emerging markets and adjacencies like cakes and pastries, with a goal of high single-digit EPS growth for 2026 [15][29] - The company plans to enhance its supply chain efficiency and reduce costs through automation and better logistics management [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite current challenges, emphasizing the importance of adapting to consumer behavior and market conditions [15][68] - The company anticipates a rebound in Europe driven by seasonal activations and improved pricing strategies, while the U.S. market is expected to stabilize with better promotional strategies [46][48] - Cocoa prices are expected to be deflationary in 2026, which will positively impact margins and allow for further investments [15][14] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at addressing cost structures and improving service levels [48][50] - There is a focus on health and wellness trends, with plans to expand product offerings in better-for-you segments [25][68] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management noted that the current price elasticity in Europe is around 0.7 to 0.8, which is higher than expected, and adjustments are being made to better align with consumer acceptance [34][58] Question: U.S. market growth strategy - The company is focusing on optimizing pricing and promotional strategies to regain growth, with a shift towards value offerings and better-for-you products [20][68] Question: Future investments and spending - Management confirmed that Q4 plans for investments are locked in, with a focus on continuous brand support and activation at point of sale [71][72]

Financial Data and Key Metrics Changes - The company reported a decline in volume in North America by 4% compared to a 2.8% average year-to-date, indicating a slowdown in the market [20][21] - The company expects a step-up in organic net revenue growth for Q4, guiding more than 4% growth [13][46] - The company anticipates high single-digit EPS growth for 2026, despite planned investments [15][72] Business Line Data and Key Metrics Changes - In Europe, the chocolate business faced a 30% price increase due to cocoa costs, but overall performance is in line with expectations [5][9] - The U.S. biscuit category is under pressure, with promotional strategies not delivering expected returns [21][66] - Emerging markets showed a 4.7% volume decline, primarily affected by Argentina's economic situation and pricing strategies in India [39][40] Market Data and Key Metrics Changes - Consumer confidence in Europe remains stable, but there are pockets of pressure due to competitive pricing and retailer margin increases [5][6] - In the U.S., consumers are shifting towards value-oriented purchases, impacting overall basket sizes and category performance [20][21] - Emerging markets like Brazil showed double-digit growth, while China experienced low single-digit growth, indicating mixed performance across regions [41][40] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to regain growth in North America [24][66] - There is a strong emphasis on innovation with new flavors and formats to drive consumer engagement [8][15] - The company plans to invest in supply chain improvements and automation to enhance profitability and service levels [48][50] Management's Comments on Operating Environment and Future Outlook - Management noted that the cocoa cost environment is expected to improve, which should positively impact margins going forward [9][14] - The company is cautious about the U.S. market outlook, projecting continued challenges but also opportunities for growth through channel expansion [29][46] - Management expressed confidence in the long-term growth potential in emerging markets, despite short-term pressures [40][41] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at reducing costs and improving efficiency [48][50] - There is a focus on maintaining a balance between protecting profit margins and offering value to consumers [66][68] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management indicated that price elasticity in Europe is currently around 0.7 to 0.8, higher than historical norms, and adjustments are being made to address pricing issues [34][36] Question: U.S. market growth strategy - Management acknowledged the need to protect profit pools while also focusing on value through pack price architecture adjustments [66][68] Question: Expectations for North America in Q4 - The company expects a rebound in North America driven by improved pricing strategies and promotional effectiveness [46][72] Question: Impact of cocoa prices on future guidance - Management stated that cocoa prices are being monitored closely, with strategies in place to benefit from potential declines [14][28] Question: SG&A cost structure and future investments - Management outlined that SG&A reductions are not entirely permanent, with plans for increased spending in 2026 to support growth initiatives [55][72]