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:
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:
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.
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%.
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.
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.
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