Mondelez International (NASDAQ:MDLZ) delivered better-than-expected Q4 earnings despite cost headwinds. The food manufacturer’s top and bottom lines came ahead of Street’s estimates, reflecting benefits from higher pricing.
In Q4, Mondelez delivered sales of 8,695 million, which increased by 13.5% year-over-year. This growth comes from a 15.4% increase in organic sales. Pricing improved by 13.8%, while volume increased by 1.6% in Q4.
Mondelez’s adjusted earnings of $0.73 per share surpassed analysts’ estimate of $0.70 and increased slightly from $0.71 in the prior-year period.
Mondelez’s organic growth rate could moderate in 2023. MDLZ expects its organic sales to increase by over 5-7% in 2023, reflecting higher pricing. However, its margins could remain under pressure due to inflation.
Is Mondelez a Buy, Sell, or Hold?
Mondelez stock has 10 Buy and three Hold recommendations for a Strong Buy consensus rating. The company’s focus on enhancing shareholders’ value through share repurchases and dividend growth acts as a catalyst. Meanwhile, its ability to support its margins through pricing action and diversified product offerings is positive.
Wall Street analysts have a price target of $73.15 on MDLZ stock, implying 11.78% upside potential.
While analysts are bullish, hedge funds sold 1.4M shares of MDLZ in three months. Meanwhile, insiders sold MDLZ stock worth $1.5M last quarter. Overall, MDLZ stock has a Neutral Smart Score of seven.