Yahoo Finance Mondelez International, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Mondelez International, Inc. (NASDAQ:MDLZ) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of US$9.3b were what the analysts expected, Mondelez International surprised by delivering a (statutory) profit of US$1.04 per share, an impressive 20% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mondelez International after the latest results.
Check out our latest analysis for Mondelez International
Taking into account the latest results, the current consensus from Mondelez International's 19 analysts is for revenues of US$36.9b in 2024. This would reflect a reasonable 2.1% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 11% to US$3.56. In the lead-up to this report, the analysts had been modelling revenues of US$37.2b and earnings per share (EPS) of US$3.47 in 2024. So the consensus seems to have become somewhat more optimistic on Mondelez International's earnings potential following these results.
There's been no major changes to the consensus price target of US$81.52, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Mondelez International, with the most bullish analyst valuing it at US$90.00 and the most bearish at US$73.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Mondelez International's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2024 being well below the historical 7.7% p.a. growth over the last five years. Compare this to the 138 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.9% per year. So it's pretty clear that, while Mondelez International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mondelez International following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Mondelez International analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Mondelez International that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
