Research Desk Line-up: Hershey Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 18, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Mondelez International, Inc. (NASDAQ: MDLZ), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MDLZ, following the Company's announcement of its Q2 2017 operating results on August 02, 2017. The maker of Oreo cookies, Cadbury chocolate, and Trident gum topped earnings estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Confectioners industry. Pro-TD has currently selected The Hershey Company (NYSE: HSY) for due-diligence and potential coverage as the Company announced on July 26, 2017, its financial results for Q2 which ended on July 02, 2017. Register for a free membership today, and be among the early birds that get access to our report on Hershey when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MDLZ; also brushing on HSY. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=MDLZ
http://protraderdaily.com/optin/?symbol=HSY
Earnings Reviewed
For the three months ended June 30, 2017, Mondelez's net revenues decreased 5.0% to $5.99 billion compared to revenue of $6.30 billion, driven by the malware incident and currency headwinds. The Company's organic net revenue decreased 2.7% on a y-o-y basis primarily driven by the impact of the malware incident, which negatively affected shipments at the end of June. Mondelez's revenue number fell short of analysts' forecast of $6.00 billion.
For Q2 2017, Mondelez's gross profit margin was 38.8%, a decrease of 110 basis points, driven primarily by the unfavorable impacts from currency and commodity hedging activities. The Company's adjusted gross profit margin was 40.0% for the reported quarter, down 10 basis points, driven by higher input costs and lower volume/mix partially offset by strong net productivity and improved pricing.
Mondelez's operating income margin was 10.7% for Q2 2017, up 60 basis points, reflecting growth in adjusted operating income margin and lower divestiture-related costs. The Company's adjusted operating income margin grew 90 basis points to 15.8%, primarily due to lower selling, general, and administrative costs.
For Q2 2017, Mondelez reported net earnings attributable to the Company of $498 million, or $0.32 per share, compared to $464 million, or $0.29 per diluted share, driven primarily by operating gains and lower divestiture-related costs, partially offset by unfavorable impacts from currency and commodity hedging activities and higher intangible asset impairment charges. Mondelez' adjusted earnings surged 19% to $0.48 per share on a constant-currency basis, driven primarily by operating gains. Earnings also came in ahead of Wall Street's expectations of $0.46 per share.
Mondelez's Segment Results
During Q2 2017, revenue from Europe totaled $2.17 billion down 5.3% on a y-o-y basis. The Company's North America segment's revenue also declined 8.5% to $1.57 billion during the reported quarter. Mondelez's Asia, Middle East & Africa section recorded revenue of $1.39 billion, while Latin America grew 0.6% to $848 million in Q2 2017.
For Q2 2017, the Snacking category growth was 1.5%, which was generally in-line with the Company's full year expectations. The Company's Biscuits business posted a revenue decline as solid performance in the UK, Japan, and Germany was offset by weakness in the US.
In its Chocolate category, Mondelez's business grew 5% on a y-o-y basis, driven by solid results in Germany, India, and Brazil. The Company observed good momentum in the US Chocolate, which is now benefiting from increased capacity in the second half as well as Milka in China which continued to perform well. The Company's Gum & Candy category declined approximately 7% as the Gum category continued to experience significant weakness, especially in the US.
Capital Return
During Q2 2017, Mondelez repurchased approximately $600 million of its common stock and paid approximately $300 million in cash dividends. The Company's Board of Directors also declared a quarterly cash dividend of $0.22 per share; an increase of 16%.
2017 Outlook
Mondelēz reaffirmed organic net revenue to increase at least 1% in 2017. The Company is estimating adjusted operating income margin in the mid-16% range and double-digit adjusted EPS growth on a constant-currency basis. Mondelez estimates currency translation would not result in a change to net revenue growth while it would reduce adjusted EPS by approximately $0.013. In addition, the Company is projecting 2017 free cash flow of approximately $2 billion.
Stock Performance
On Thursday, August 17, 2017, the stock closed the trading session at $43.41, declining 1.77% from its previous closing price of $44.19. A total volume of 6.58 million shares have exchanged hands. Mondelez's stock price advanced 0.49% in the last six months and 0.93% in the previous twelve months. The stock is trading at a PE ratio of 37.98 and has a dividend yield of 1.75%. The stock currently has a market cap of $65.94 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily