Mondelēz International Posts Upbeat Third Quarter Results; Street Says Buy


Confectionery giant Mondelēz International, Inc. (MDLZ) has reported better-than-expected results for the third quarter ended September 30, 2021, as the company’s results exceeded expectations on both earnings and revenue fronts.

Following the news, shares of the company gained 2.4% to close at $62.80 in the extended trading session on Tuesday.

Mondelēz International reported quarterly net revenues of $7.18 billion, which denotes a rise of 7.8% from the previous year. Further, the figure topped the consensus estimate of $7.03 billion. The growth in net revenues can be attributed primarily to a 5.5% year-over-year rise witnessed in Organic Net Revenues.

Quarterly earnings of $0.71 per share rose 9.4% year-over-year on a constant-currency basis. The figure marginally surpassed the consensus estimate of $0.70 per share.

While MDLZ’s gross profit margin declined by 260 basis points to 39.3%, its operating income margin increased by 100 basis points to 18%.

The company also provided guidance for 2021. It expects organic net revenue growth of 4.5% in 2021. The company expects adjusted EPS growth to be in high single digits in the same period. Further, it expects to generate free cash flow of more than $3 billion.

The CEO of Mondelēz International, Dirk Van de Put, said, “We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets. Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation” (See Mondelēz International stock chart on TipRanks)

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On November 2, Jefferies analyst Robert Dickerson reiterated a Buy rating on the stock with a price target of $72, which implies upside potential of 17.3% from current levels.

Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Mondelēz International price target of $70 implies upside potential of 14.1% from current levels. Shares have gained 12.8% over the past year.

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