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.
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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.
