Market Overview - U.S. stocks are rising, with the S&P 500 up 0.3%, Dow Jones Industrial Average up 271 points (0.6%), and Nasdaq composite up 0.5%, all approaching record highs [1] - The bond market remains steady as investors await the Federal Reserve's interest rate announcement, with expectations for a second rate cut this year [2] Company Performance - Caterpillar's stock surged 12.2% after reporting stronger-than-expected profit and revenue, citing resilient demand for equipment [3] - Teradyne's shares soared 19.4% following a strong profit report, driven by robust demand related to artificial intelligence applications [3] - Nvidia's stock rose 2.7%, making it the first company valued at $5 trillion, just three months after surpassing the $4 trillion mark [3] Negative Company News - Fiserv's stock plummeted 40.3% after reporting weaker-than-expected profit, cutting its profit forecast, and undergoing leadership changes, marking its worst trading day since 1986 [4] - Mondelez International's shares fell 3.7% despite reporting stronger results, as the company faces challenges from record-high cocoa inflation [5]

Core Viewpoint - Mondelez International has reduced its full-year sales growth expectations and anticipates a larger decline in earnings per share due to a decrease in third-quarter volumes [1][2]. Financial Performance - For the third quarter, Mondelez reported adjusted earnings per share (EPS) of $0.73, a decline of 24.2% in constant currency compared to the same period last year [5]. - Headline diluted EPS fell 9.5% to $0.57 [5]. - Organic net sales increased by 3.4% to $9.74 billion for the third quarter, with reported sales up 5.9% [5]. Sales Growth Projections - The company now projects organic growth in the 4%-plus range, down from a previous forecast of around 5% [2]. - Adjusted EPS is expected to decline by about 15% on a constant-currency basis, compared to an earlier estimate of a 10% decrease [2]. Volume and Pricing Trends - Volume/mix declined by 4.6 percentage points, while pricing contributed an 8 percentage point increase [5]. - The steepest volume/mix decline was observed in Europe at -7.5%, significantly higher than the 1.8% drop in North America [6]. - Pricing in Europe was 12.6%, compared to 1.5% in North America, with organic growth in Europe at 5.1% and a slight decline of 0.3% in North America [6]. Market Conditions and Future Outlook - The CEO noted that the company faced record-high cocoa cost inflation but expressed optimism due to recent moderation in cocoa prices and signs of a strong cocoa crop this fall [4]. - The outlook is influenced by greater than usual volatility, including geopolitical, trade, regulatory uncertainties, and commodity prices [3].

Core Insights - Mondelez International Inc. has reached "peak costs" and has adjusted its expectations for the year [1] Company Summary - Mondelez is known for its popular products, including Oreo cookies, Ritz crackers, and Sour Patch Kids candy [1]

Company Outlook - Mondelez lowered its full-year outlook [1] Cost Pressure - High cocoa prices continue to present an obstacle to Mondelez [1] Product Portfolio - The company is the maker of Oreo cookies and Ritz crackers [1]

Business Strategy - Merging two iconic American snacks from rival companies presented a complex undertaking [1] - The concept of combining Oreo cookies and Reese's peanut butter cups was initially simple [1]

Core Insights - Mondelez (MDLZ) reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, but down from $0.86 per share a year ago [1] - The earnings surprise was +7.35%, and the company has surpassed consensus EPS estimates three times in the last four quarters [2] - Mondelez generated revenues of $8.98 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.18% and up from $8.34 billion year-over-year [3] Earnings Performance - The company had a previous quarter earnings expectation of $0.65 per share but reported $0.74, resulting in a surprise of +13.85% [2] - The current consensus EPS estimate for the upcoming quarter is $0.82 on revenues of $9.84 billion, and for the current fiscal year, it is $3.03 on revenues of $38.49 billion [8] Stock Performance - Mondelez shares have increased approximately 16.5% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Outlook - The Food - Miscellaneous industry, to which Mondelez belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which investors can track [6]

Core Viewpoint - Conagra Brands reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.59 per share, and showing a decline from $0.61 per share a year ago, indicating a negative earnings surprise of -5.08% [1][2] Financial Performance - The company posted revenues of $2.78 billion for the quarter ended May 2025, which was 2.18% below the Zacks Consensus Estimate and down from $2.91 billion year-over-year [2] - Over the last four quarters, Conagra Brands has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Conagra Brands shares have declined approximately 26.6% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The current Zacks Rank for Conagra Brands is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $2.72 billion, while for the current fiscal year, the estimate is $2.19 on revenues of $11.64 billion [7] - The trend of estimate revisions for Conagra Brands has been unfavorable leading up to the earnings release [6] Industry Context - The Food - Miscellaneous industry, to which Conagra Brands belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Mondelez, another company in the same industry, is expected to report quarterly earnings of $0.67 per share, reflecting a year-over-year decline of -22.1% [9]

Company Performance - Conagra Brands reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.59 per share, and down from $0.61 per share a year ago, representing an earnings surprise of -5.08% [1] - The company posted revenues of $2.78 billion for the quarter ended May 2025, missing the Zacks Consensus Estimate by 2.18%, and down from $2.91 billion year-over-year [2] - Over the last four quarters, Conagra Brands has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Conagra Brands shares have declined approximately 26.6% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The current Zacks Rank for Conagra Brands is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $2.72 billion, and for the current fiscal year, it is $2.19 on revenues of $11.64 billion [7] - The outlook for the Food - Miscellaneous industry, where Conagra Brands operates, is currently in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Mondelez (MDLZ) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance and Projections - For the fiscal year ending December 2025, Mondelez is expected to earn $3.02 per share, reflecting a -10.1% change from the previous year, but the Zacks Consensus Estimate has increased by 4.4% over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Mondelez's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Mondelez's international operations are crucial for assessing its financial resilience and growth prospects [1][2] - The company's reliance on international markets offers insights into its earnings sustainability and growth potential [2][3] Revenue Performance - Mondelez's total revenue for the quarter was $9.31 billion, a 0.3% increase from the previous year [4] - Latin America contributed $1.2 billion, accounting for 12.92% of total revenue, which was a surprise decrease of -1.8% from expectations [5] - Europe generated $3.55 billion, making up 38.12% of total revenue, exceeding expectations by +4.45% [6] - AMEA's revenue was $2.02 billion, constituting 21.65% of total revenue, falling short of projections by -2.82% [7] Future Projections - Analysts project total revenue for the current fiscal quarter to reach $8.81 billion, a 5.6% increase year-over-year [8] - For the full year, total revenue is expected to be $38.24 billion, reflecting a 4.9% increase from the previous year [9] Market Dynamics - Mondelez's reliance on international markets presents both opportunities and challenges, making it essential to track international revenue trends [10] - The company's domestic market status also influences earnings forecasts, which are critical for stock price movements [11] Stock Performance - Over the past four weeks, Mondelez's stock value decreased by 3.6%, while the S&P 500 composite increased by 9.1% [13] - In the last three months, Mondelez shares rose by 8.2%, contrasting with a 3.1% decline in the S&P 500 [13]