Mondelez International is set to report fourth-quarter results after the market closes Tuesday. Here’s what you need to know.
NET INCOME: The Chicago-based snacking company is expected to report a profit of $997.7 million, up from $583 million a year earlier, according to the consensus of eight analysts polled by FactSet.
REVENUE: Sales are expected to rise to $9.31 billion from $8.7 billion a year ago, according to 14 analysts polled by FactSet. Analysts expect organic sales to rise 9.5%, compared with more than 15% organic growth in prior quarters in 2023.
ADJUSTED EARNINGS: Stripping out certain one-time items, the company is expected to post a per-share profit of 78 cents in the fourth quarter, according to 18 analysts polled by FactSet.
WHAT TO WATCH
–Food companies have seen sales surge on the back of persistent inflation, but with price increases moderating, 2024 may be a lighter year of growth. How long high inflation persists will be a major factor in the top-line for Mondelez and others in the food space. The fourth-quarter report will offer the latest signal of the benefits of pricing for Mondelez.
–Mondelez has signaled customers are holding up despite price hikes and economic concerns. Mizuho analyst John Baumgartner said in a research note after third-quarter results that U.S. shoppers are shifting to larger pack sizes in non-measured club and e-commerce channels, a signal that demand is resilient. Investors will be looking for signs of continued volume/mix growth in the fourth quarter.
–The maker of Oreos and Ritz crackers said with third-quarter results that its outlook was given in the context of greater volatility from geopolitical uncertainty. Since then, disruptions in the Red Sea have driven up freight prices and caused some delays. Mondelez will indicate Tuesday whether geopolitical events have affected its top and bottom line.