Have you assessed how the international operations of Mondelez (MDLZ) performed in the quarter ended March 2025? For this maker of Oreo cookies, Cadbury chocolate and Trident gum, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different 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 $9.31 billion, marking an increase of 0.3% from the year-ago quarter. We will next turn our attention to dissecting MDLZ's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in MDLZ's International Revenues
Of the total revenue, $1.2 billion came from Latin America during the last fiscal quarter, accounting for 12.92%. This represented a surprise of -1.8% as analysts had expected the region to contribute $1.22 billion to the total revenue. In comparison, the region contributed $1.17 billion, or 12.19%, and $1.32 billion, or 14.20%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Europe contributed $3.55 billion in revenue, making up 38.12% of the total revenue. When compared to the consensus estimate of $3.4 billion, this meant a surprise of +4.45%. Looking back, Europe contributed $3.74 billion, or 38.98%, in the previous quarter, and $3.37 billion, or 36.25%, in the same quarter of the previous year.
AMEA generated $2.02 billion in revenues for the company in the last quarter, constituting 21.65% of the total. This represented a surprise of -2.82% compared to the $2.07 billion projected by Wall Street analysts. Comparatively, in the previous quarter, AMEA accounted for $1.91 billion (19.87%), and in the year-ago quarter, it contributed $1.95 billion (20.99%) to the total revenue.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for Mondelez, as projected by Wall Street analysts, is expected to reach $8.81 billion, reflecting an increase of 5.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Latin America is anticipated to contribute 13.6% or $1.2 billion, Europe 34.6% or $3.05 billion and AMEA 19.6% or $1.72 billion.
For the full year, a total revenue of $38.24 billion is expected for the company, reflecting an increase of 4.9% from the year before. The revenues from Latin America, Europe and AMEA are expected to make up 12.9%, 37.1% and 20.5% of this total, corresponding to $4.91 billion, $14.18 billion and $7.84 billion respectively.
Key Takeaways
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.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Currently, Mondelez holds a Zacks Rank #2 (Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Mondelez's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has diminished by 3.6%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Staples sector, which counts Mondelez among its entities, has depreciated by 0.4%. Over the past three months, the company's shares have seen an increase of 8.2% versus the S&P 500's 3.1% decline. The sector overall has witnessed an increase of 2.9% over the same period.
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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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