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Factors to Consider Before Mondelez's (MDLZ) Q3 Earnings

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Mondelez International, Inc. (MDLZ - Free Report) is likely to display year-over-year growth in the top and bottom lines, when it reports third-quarter 2021 earnings on Nov 2. The Zacks Consensus Estimate for revenues is pegged at $7,031 million, suggesting a rise of 5.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has moved south by a cent over the past seven days to 70 cents per share, which indicates an increase of 11.1% from the figure reported in the prior-year period. In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 2.9%, on average.

Key Factors to Note

Apart from witnessing continued demand spike for the categories that have been benefiting amid the pandemic, Mondelez is gaining on recovery in World Travel Retail, and in the gum and candy categories. Apart from this, the company has been gaining on buyouts and alliances.

Recently, the company teamed up with MissFresh to introduce Oreo Zero on the latter’s popular online retail platform. Earlier, it announced a deal to buy Chipita S.A., which is a major producer of sweet and salty snacks in Central and Eastern Europe. Prior to this, in 2021, Mondelez took over a renowned sports performance and active nutrition brand — Grenade. Further, the company acquired Australia-based food company — Gourmet Food Holdings — which operates in the premium biscuit and cracker category. Mondelez completed the acquisition of Hu Master Holdings, the parent company of Hu Products on Jan 4, 2021. Contributions from these buyouts are likely to have aided its performance during the quarter under review.

That said, management on its last earnings call stated that it envisions commodity, logistics and labor costs to further flare up in the second half of 2021. While Mondelez is focused on managing these costs through pricing and saving initiatives, it does anticipate some pressure points during the second half.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Mondelez this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mondelez currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -2.08%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Tyson Foods (TSN - Free Report) has an Earnings ESP of +19.13% and carries a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Coca-Cola Company (KO - Free Report) has an Earnings ESP of +0.75% and carries a Zacks Rank of 3, currently.

The Estee Lauder Companies (EL - Free Report) has an Earnings ESP of +0.24% and currently holds a Zacks Rank #3.

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