Results: Mondelez International, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
The third-quarter results for Mondelez International, Inc. (NASDAQ:MDLZ) were released last week, making it a good time to revisit its performance. Revenues were US$10.0b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.02, an impressive 44% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Mondelez International's 19 analysts are now forecasting revenues of US$41.0b in 2027. This would be a satisfactory 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.3% to US$3.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$41.2b and earnings per share (EPS) of US$3.33 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Mondelez International
There were no changes to revenue or earnings estimates or the price target of US$70.41, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Mondelez International, with the most bullish analyst valuing it at US$77.00 and the most bearish at US$55.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Mondelez International's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2027 being well below the historical 6.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.8% annually. Even after the forecast slowdown in growth, it seems obvious that Mondelez International is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$70.41, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mondelez International going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Mondelez International that we have uncovered.
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