Mondelez Set to Release Q1 Earnings: Key Insights for Investors

Mondelez International, Inc. MDLZ is likely to register top-line growth when it reports first-quarter 2025 earnings on April 29. The Zacks Consensus Estimate for revenues is pegged at $9.3 billion, indicating growth of 0.4% from the prior-year quarter. 

However, the company’s bottom line is expected to decline year over year. The consensus mark for first-quarter earnings has decreased a penny in the past 30 days to 66 cents per share, indicating a decline of 30.5% from the figure reported in the year-ago quarter. MDLZ delivered a trailing four-quarter earnings surprise of 8.3%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Mondelez International, Inc. Price, Consensus and EPS Surprise

Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote

Things to Know About MDLZ’s Upcoming Results

Continuous reinvestments in its brands and capabilities, along with impressive portfolio reshaping efforts, have been working well for Mondelez. By focusing on core categories such as chocolate, biscuits and baked snacks, enhancing brand appeal, prioritizing operational efficiency and cost management, the company has been laying the groundwork for sustained performance. These efforts are likely to have supported the company’s performance in the to-be-reported quarter. Our model expects 0.7% revenue growth in the biscuit categories for the first quarter. 

As Mondelez continues to invest in innovation, marketing and distribution, the durability of the core categories positions it well for sustained growth, giving out positive signals for the first quarter. In addition, the company has been gaining from a favorable pricing environment. Our model expects organic revenue growth of 3.1% for the first quarter on a 3.2% increase in pricing.

While the aforementioned factors have raised optimism, ongoing headwinds from elevated input costs, particularly cocoa, remain a concern. The persistence of such cost pressures is likely to have weighed on profitability in the first quarter.

What the Zacks Model Predicts for MDLZ

Our proven model does not conclusively predict an earnings beat for Mondelez this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

Mondelez has a Zacks Rank #3 (Hold) and an Earnings ESP of -1.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The J. M. Smucker Company SJM currently has an Earnings ESP of +2.96% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings per share (EPS) is pegged at $2.25, which implies a 15.4% decrease year over year. The consensus estimate for J. M. Smucker’s quarterly revenues is pegged at $2.2 billion, which indicates a decline of 0.9% from the figure reported in the prior-year quarter. SJM delivered a trailing four-quarter earnings surprise of 11.7%, on average.

Post Holdings, Inc. POST currently has an Earnings ESP of +7.20% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at $1.19, which implies a 21.2% decrease year over year.

The consensus mark for Post Holdings’ quarterly revenues is pegged at $2 billion, which indicates a decline of 0.7% from the figure reported in the prior-year quarter. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.

Freshpet, Inc. FRPT currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2025 EPS is pegged at 13 cents, which implies a 38.1% decrease year over year.

The consensus estimate for Freshpet’s quarterly revenues is pegged at $262.3 million, which indicates growth of 17.2% from the figure reported in the prior-year quarter. FRPT delivered a trailing four-quarter earnings surprise of 78.8%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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