Snacks and meals large Mondelez Worldwide Inc (NASDAQ: MDLZ) reported Tuesday a “strong” topline beat in its second quarter outcomes that justifies a continued bullish stance on the inventory, in keeping with RBC Capital Markets analyst Nik Modi.
3 key takeaways from MDLZ Q2
Mondelez reported second quarter EPS of 66 cents on income of $6.64 billion versus expectations of 64.8 cents per share and income of $6.5 billion. The corporate mentioned within the earnings report it noticed energy throughout the “overwhelming majority” of geographies, classes, and types.
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Commenting on the report, Modi highlighted three key takeaways from what he describes as a “good” quarter. First, the corporate reported year-over-year top-line development of 12.4% versus the analysis agency’s estimate of 9.7%. Notably, North America’s natural top-line development of detrimental 0.3% was “properly forward” of expectations of down 3%.
Second, rising markets “remained resilient” regardless of a surge in COVID-19 an infection circumstances in key areas, the analyst wrote. Particularly, natural development was up 16.5% on a ten.6% quantity development and 5.9% improve in pricing.
Lastly, administration revised its natural gross sales development outlook increased from 3% to 4%. Whereas the corporate rightfully saved a conservative bottom-line outlook, administration nonetheless “sounded assured” for the rest of the 12 months.
Bullish stance maintained
Modi maintained an Outperform ranking on Mondelez’s inventory with an unchanged $69 value goal. The analyst’s goal is predicated on current success in administration’s focus away from margin enlargement to growth-oriented and organizational enhancements. A extra “nimble decision-making” group must also translate to accelerating market share features and outperformance.
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