Valued at a market cap of $74.9 billion, Mondelez International, Inc. (MDLZ) is a Chicago-based snacking powerhouse known for iconic brands like Oreo, Cadbury, Toblerone, Milka, and Ritz. Operating in more than 150 countries, the company focuses on biscuits, chocolates, gum, and candy, with an emphasis on consumer convenience and premium snacking.
Despite its strong brand portfolio, shares have underperformed the broader market over the past year. MDLZ has declined 17.2% over this time frame, while the broader S&P 500 Index ($SPX) has surged 17.4%. Year-to-date, the stock is down 3.3%, while the benchmark index has gained 16%.
Zooming in, the stock has also trailed the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 14.4% loss over the past 52 weeks and 9.3% fall on a YTD basis.
On Oct. 28, Mondelez International posted solid third-quarter results, and its shares dropped 2.4%. While its net revenue rose 5.9%, with organic sales up 3.4% driven by price increases, volumes suffered, and margins were pressured due to elevated cocoa and input costs. Profitability weakened, with adjusted EPS falling 24.2% year over year to $0.73 and operating income slipping 35.5% from the previous-year quarter to $744 million.
For the current fiscal year, ending in December, analysts expect MDLZ’s EPS to decline 12.8% year over year to $2.93. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 14 “Strong Buy,” three “Moderate Buy,” eight “Hold,” and one “Strong Sell” rating.
This configuration is slightly bearish than it was a month ago, with 15 analysts recommending a “Strong Buy” rating.
On Oct. 11, Deutsche Bank maintained a “Hold” rating on Mondelez International, with a price target of $65.
The mean price target of $71.56 represents a 23.8% potential upside from MDLZ’s current price levels, while the Street-high price target of $85 suggests an upside potential of 47.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
