Mondelez Int'l (MDLZ) Tops Q2 EPS by 8c; Adds $6B to Common Stock Buyback Program
Mondelez Int'l (NASDAQ: MDLZ) reported Q2 EPS of $0.47, $0.08 better than the analyst estimate of $0.39. Revenue for the quarter came in at $7.66 billion versus the consensus estimate of $7.5 billion.
Return of Capital
The company's Board of Directors approved a $6.0 billion increase to the company's share repurchase authorization from $7.7 billion to $13.7 billion and extended the expiration by two years to December 31, 2018. In the first half, the company repurchased nearly $2.2 billion of its common stock at an average price of $37.17 per share.
As previously announced, on July 23, 2015, the company's Board of Directors declared a regular quarterly dividend of $0.17 per share, an increase of 13 percent. The dividend is payable on Oct. 14, 2015, to shareholders of record as of Sept. 30, 2015. In the first half, the company paid $495 million in dividends.
Outlook
The company combined its global coffee business with D.E Master Blenders 1753 B.V. on July 2, 2015, to create Jacobs Douwe Egberts. As a result of the transaction, the net revenue and costs associated with the company's global coffee business will no longer be included in the company's income statement in future reporting periods. Beginning in the third quarter 2015, the company will reflect its proportional share of JDE's after-tax income, as well as after-tax income related to its other non-consolidated joint ventures, in equity earnings, which are not included in operating income.
Separately today, via a Form 8-K being filed with the Securities and Exchange Commission, the company is providing pro forma non-GAAP financial results that reflect the reclassification of the coffee business net revenues and costs, as well as the reclassification of after-tax income related to its other non-consolidated joint ventures, from operating income to equity earnings to facilitate comparisons of historical and future results. These pro forma adjusted financial results serve as the basis of the company's updated 2015 outlook, as described below.
| Outlook Summary | ||
| Item | Prior Outlook | Updated Outlook |
| Organic Net Revenue Growth | • Full Year 2015: 2%+ | • H2 and Full Year 2015: 3%+ versus pro forma 2014 |
| Adjusted Operating Income Margin | • Full Year 2015: ~14% • Full Year 2016: 15%-16% | • H2 2015: at least 14% • Full Year 2015 (pro forma): |
| • ~14% excluding (20)-(30) basis points of stranded overhead costs | ||
| • Full Year 2016: 15%-16% | ||
| Adjusted EPS | • Full Year 2015: Double-digit growth on a constant currency basis | • Full Year 2015: Double-digit growth on a constant currency basis |
| Free Cash Flow excluding items1 | • Full Year 2015: ~$1.2 billion | • Full Year 2015: ~$1.0 billion reflecting the coffee transaction |
For earnings history and earnings-related data on Mondelez Int'l (MDLZ) click here.