Did you analyze how Mondelez (MDLZ) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this maker of Oreo cookies, Cadbury chocolate and Trident gum, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Upon examining MDLZ's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter amounted to $8.98 billion, showing rise of 7.7%. We will now explore the breakdown of MDLZ's overseas revenue to assess the impact of its international operations.
Exploring MDLZ's International Revenue Patterns
Of the total revenue, $1.19 billion came from Latin America during the last fiscal quarter, accounting for 13.3%. This represented a surprise of +0.44% as analysts had expected the region to contribute $1.19 billion to the total revenue. In comparison, the region contributed $1.2 billion, or 12.9%, and $1.23 billion, or 14.8%, to total revenue in the previous and year-ago quarters, respectively.
AMEA accounted for 20.3% of the company's total revenue during the quarter, translating to $1.82 billion. Revenues from this region represented a surprise of +6.69%, with Wall Street analysts collectively expecting $1.71 billion. When compared to the preceding quarter and the same quarter in the previous year, AMEA contributed $2.02 billion (21.7%) and $1.59 billion (19%) to the total revenue, respectively.
Europe generated $3.41 billion in revenues for the company in the last quarter, constituting 38% of the total. This represented a surprise of +0.95% compared to the $3.38 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $3.55 billion (38.1%), and in the year-ago quarter, it contributed $2.87 billion (34.5%) to the total revenue.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Mondelez will post revenues of $9.81 billion for the ongoing fiscal quarter, an increase of 6.6% from the year-ago quarter. The expected contributions from Latin America, AMEA and Europe to this revenue are 12.7%, 20.7%, and 38.3%, translating into $1.25 billion, $2.03 billion, and $3.75 billion, respectively.
Analysts expect the company to report a total annual revenue of $38.41 billion for the full year, marking an increase of 5.4% compared to last year. The expected revenue contributions from Latin America, AMEA and Europe are projected to be 12.7% ($4.89 billion), 20.6% ($7.89 billion) and 39.2% ($15.06 billion) of the total revenue, in that order.
Concluding Remarks
Relying on international markets for revenues, Mondelez faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At the moment, Mondelez has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Reviewing Mondelez's Recent Stock Price Trends
The stock has declined by 7.3% over the past month compared to the 0.6% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Mondelez,has decreased 3.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 3.7% relative to the S&P 500's 11.7% increase. Throughout this period, the sector overall has witnessed a 2.4% decrease.
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Mondelez International, Inc. (MDLZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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