Mondelez Pressured By Higher Input Costs, But Retail’s Happy With Q1 Profit Beat — Analysts See More Upside

Mondelez International (MDLZ) reported mixed results on Wednesday, which it blamed on a decline in business in the Americas and higher cocoa prices.

Revenue rose 0.2% to $9.31 billion in the first quarter, just shy of the $9.32 billion analyst estimate from FactSet.

Sales declined 8.8% in Latin America and 4.1% in North America. Those declines were offset by growth in Europe, Asia, the Middle East, and Africa markets, the company said.

Mondelez, which makes Oreo cookies and Ritz crackers, reaffirmed its full-year guidance of a 5% growth in organic net revenue and a 10% decline in adjusted earnings per share.

Shares gained 3.8% on Wednesday.

Mondelez said net profit in the quarter dropped to $402 million from $1.41 billion last year due to a mark-to-market impact from commodity and currency derivatives, as well as higher transportation costs.

Excluding one-time items, the profit was $0.74 per share, above analysts' target of $0.66.

In recent quarters, Mondelez has maintained business momentum through price increases to offset rising input costs, as well as new products and promotional campaigns.

On Stocktwits, retail sentiment climbed to 'extremely bullish' from 'bullish' a day prior, and message volume jumped to 'extremely high.'

Users on the platform were encouraged by Wall Street analysts raising their price targets on the stock following the earnings report.

Morgan Stanley, which raised its price target to $72 from $69, said the company is “an outlier vs. food peers this earnings season."

Barclays said it sees the company's visibility increasing for "reasonable" earnings growth in 2026, with Mondelez successfully hiking prices in key markets for this year with minimal volume disruption.

Mondelez shares are down 2.4% year to date.

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