Since its last earnings report a month ago, Mondelez International Inc (NASDAQ:$MDLZ) shares have plummeted about 6.1%. This greatly underperforms the market.
Here, we examine whether Mondelez is capable of rebounding before the stock’s next earnings release.
2Q17 Results
- Adjusted earnings of 48 cents per share, beating estimates by 4.3%
- Adjusted earnings grew 19%, driven by operating gains and lower divestiture-related costs
- Net revenue declined 5% year over year due to negative currency impact and global cyber attacks
- Emerging markets’ net revenues decreased by 1.5%
- Regionally, Asia, Middle East & Africa, Europe, and North America registered a respective 3.6%, 5.3%, and 8.5% decline in revenues
- Pricing increased by 1.1%, same as the previous quarter
Margins
- Adjusted gross margin decreased 10 basis points year over year to 40%
- Adjusted operating margin increased by 90 basis points year over year to 15.8%
Financials
- As of June 30th, 2017, Mondelez reported cash and cash equivalents of $1.4 billion, down from $1.74 billion at the end of 2016
- The company returned $900 million of capital to shareholders
Following the release, investors saw a downward trend in fresh estimates. At this time, Mondelez incurs a stock Growth Score of C. On the other hand, its momentum is doing a lot better with a score of A. That means, the stock is more suitable for momentum investors than those looking for value and growth.
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