Could Mondelēz International Stock Revive on 3Q17 Results?
Analysts expect improved quarter
Mondelēz International (MDLZ) is set to announce its 3Q17 results on October 30, 2017. Analysts expect it to report improved sales and profitability, driven by higher volumes and incremental cost savings. Mondelēz has been disappointing investors with its top-line performance as sluggish demand and portfolio restructuring initiatives have dragged down sales. However, sales are expected to rebound in 3Q17, driven by increased shipments, new product launches, and a focus on wellness.
The company’s bottom line is also projected to gain from improved volumes and reductions in advertising and overhead costs. However, a tepid industry trend, moderating consumer uptake, and increasing input costs could remain a drag.
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Mondelēz stock performance
Mondelēz stock has fallen 7.2% on a YTD (year-to-date) basis as of October 17, 2017. A continuing decline in sales and pressure on earnings from increased input costs could have led investors to sell the stock. The stock prices for a majority of packaged food manufacturers in the United States (SPY) are also trading in the red. A low demand for their products and inflation in commodity prices are taking a toll on their top-line and bottom-line performances.
On a YTD basis, Kellogg (K), Conagra Brands (CAG), and Kraft Heinz (KHC) have fallen 16.2%, 13.5%, 11.2%, respectively. JM Smucker (SJM), Campbell Soup (CPB), and General Mills (GIS) have fallen 18.3%, 23.7%, and 16.3%, respectively. Hershey (HSY) stock and the S&P 500 Index (SPX) have risen 7.1% and 14.3%, respectively.