21 Jul

What’s Expected of Mondelez’s Earnings for 2Q16?

WRITTEN BY Sushree Mohanty

Earnings expected to fall

Let’s now discuss analysts’ 2Q16 EPS (earnings per share) estimates for Mondelez International (MDLZ) as well as the management’s outlook for 2016. Analysts expect Mondelez’s adjusted EPS to be $0.40 compared to $0.47 in 2Q15. This represents a drastic decline of 15% after tremendous growth in 1Q16. The company even beat analysts’ estimates by 20% in 1Q16. The second quarter is a seasonally weak quarter for the company.

What’s Expected of Mondelez’s Earnings for 2Q16?

Outlook for 2016

Analysts expect earnings to bounce back in the second half of 2016 with the holiday season making the full year growth positive. Analysts estimate earnings growth of 7% and 9% for 3Q16 and 4Q16, respectively. For fiscal 2016, analysts expect earnings to be ~$1.83, an increase of 5% compared to $1.75 in fiscal 2015.

Earnings estimate for peers

Mondelez’s peers in the industry include Hershey (HSY), Kellogg (K), and Kraft Heinz (KHC).

  • Hershey’s EPS for 2Q16 is projected to be in line with 2Q15.
  • Kellogg’s EPS for 2Q16 is expected to fall by 1%.
  • Kraft Heinz’s EPS for 2Q16 is estimated to rise by 18%.

To gain exposure to Mondelez, you can invest in the First Trust NASDAQ-100 Ex-Technology Sector IndexSMFund (QQXT) and the First Trust NASDAQ-100 Equal Weighted IndexSMFund (QQEW). They invest 3% of their combined holdings in the stock.

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