Mondelez Earnings: What You Need to Know

Mondelez International (NASDAQ: MDLZ  ) reported earnings after the market closed on Wednesday. Here's what you need to know about the company's recent results.

Expectations on par
Mondelez reported earnings of $0.41 per share for the third quarter, which was in line with Wall Street's expected Q3 profits. Better yet, the maker of Oreo, Chips Ahoy, and Cadbury raised its 2013 adjusted EPS target to $1.57-$1.62. 

Unsavory organic growth
Mondelez's organic net revenues increased 5.3% in Q3 2013, and the company's "power brands" were up nearly 7%, led by belVita biscuits and Cadbury chocolates. However, CEO Irene Rosenfeld pointed to "weak biscuit performance in China, continued headwinds from coffee pricing, and slower global category growth" for the below-expectations revenue growth. As a result, the chocolatier trimmed its full-year 2013 organic net revenue growth outlook to approximately 4%, down from its previous 5% to 7% target.  

Sweet success in emerging markets
The Illinois-based company already derives more than 40% of its sales from developing markets. But it's critical to the long-term success of the company for this percentage to grow. For the third quarter, Mondelez posted 10.7% revenue growth in emerging markets, led by Russia, India, and Brazil. Revenues from these markets have increased during the past several quarters, from 8.4% growth in Q4 2012 to 9.3% in Q1 2013 to 9.5% in Q2 2013. Importantly, Mondelez has achieved its long-term target of double-digit growth this quarter. But will it continue? 

Chocolate rival Hershey (NYSE: HSY  ) is also gaining serious ground in these honeyed markets. Outside the U.S. and Canada, international net sales for the maker of Twizzlers, Reese's, and Kit Kat rose 14.2% in the third quarter, led by China, Brazil, and Mexico. These strong results endorse Hershey's similar strategy of focusing investments in key markets, especially Latin America and Asia. Hershey recently reported third-quarter 2013 adjusted earnings per share of $1.04, up 19% over the same period a year ago. 

Despite its near-term challenges, the snack-food giant boasts plenty of attractive long-term growth opportunities. For the patient investor, Mondelez holds a great deal of promise.

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