Earnings Preview: Mondelez International Inc (NASDAQ:MDLZ), Gibraltar Industries Inc (NASDAQ:ROCK)

During Wednesday’s Morning trade, Shares of Mondelez International Inc (NASDAQ:MDLZ), dropped -0.89% to $46.19. The firm opened its current trade at $46.16, and as of now, it is trading at $46.15. The total volume traded for the day is 1.11M shares, as compared to its average daily volume of 9.56M shares. The stock is floating in a range of $46.01 $47.00. The stocks hold the market capitalization of $74.73B.

Today, Mondelz International, Inc. (MDLZ) stated its third quarter 2015 results, reflecting continued strong Adjusted Operating Income 1 margin expansion and solid Organic Net Revenue growth. Adjusted EPS was flat as compared to the preceding year on a constant-currency basis due to dilution related to the companys recently created coffee joint venture.

On a stated basis, net revenues were $6.8 billion, down 17.8 percent, counting a negative 13.6 percentage point impact from currency and a negative 9.3 percentage points from the coffee business transactions. Operating income was $7.8 billion, up 815 percent, counting a $7.1 billion pre-tax gain from the coffee transaction. Diluted EPS was $4.46, up $3.93.

Organic Net Revenue raised 3.7 percent, as the company raised prices to recover currency-driven input cost inflation. Volume/mix was unfavorable, largely due to price elasticity as well as a 70 basis point headwind resulting from planned decisions to exit certain low-margin product lines. Power Brands grew 5.1 percent. Organic Net Revenue from emerging markets was up 10.3 percent, while developed markets reduced 0.5 percent.

Adjusted Gross Profit 1 margin was 39.1 percent, up 180 basis points.  The improvement was driven by strong net productivity partially offset by a negative 40 basis point impact from a mark-to-market adjustment associated with commodities and currency hedging.

Adjusted Operating Income margin expanded 170 basis points to 14.1 percent.  The company significantly stepped up advertising and consumer support, especially behind its Power Brands, and continued to reduce overhead costs as a percent of revenue.

Adjusted EPS was flat to preceding year on a constant-currency basis as the companys strong operating performance was offset by dilution related to the recently created coffee joint venture in addition to cycling an unusually low effective tax rate in the preceding-year quarter.

Return of Capital

Through the first nine months, the company repurchased $3.1 billion of its common stock at an average price of $38.69 per share and paid $736 million in dividends.

Mondelz International also declared that it has named Mark Clouse, 47, to the newly created position of Chief Commercial Officer (CCO), and Tim Cofer, 46, as Chief Growth Officer (CGO), as the company continues to sharpen its focus on cost savings, growth and commercial execution. These changes become effective in January 2016.

Mondelez International, Inc., through its auxiliaries, manufactures and markets snack food and beverage products worldwide. The company offers biscuits, counting cookies, crackers, and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.

On the other hand, Shares of Gibraltar Industries Inc (NASDAQ:ROCK), gained 15.64% to $24.85.

Gibraltar Industries, Inc. (NASDAQ: ROCK), stated its financial results for the three and nine month periods ended September 30, 2015. All financial metrics in this release reflect only the Companys ongoing operations unless otherwise noted.

Gibraltar’s net sales for the third quarter of 2015 raised 30 percent to $305.0 million, contrast with $234.1 million in the third quarter of 2014. Adjusted net income was $15.7 million, or $0.50 per diluted share, contrast with $9.5 million, or $0.30 per diluted share, in the third quarter of 2014. The adjusted third-quarter 2015 results exclude special items with an after-tax net charge totaling $2.1 million, or $0.07 per diluted share, resulting primarily from costs related to the acquisition of RBI Solar, Inc., Rough Brothers Manufacturing Inc., and associates (collectively “RBI�?) on June 9, costs related to business restructuring and the Company’s senior leadership transition. The adjusted third-quarter 2014 results excluded special items with an after-tax net gain totaling $0.1 million, or $0.01 per diluted share, resulting primarily from acquisition-related gains and exit activity costs related to business restructuring. Counting these items in the respective periods, the Company’s third-quarter 2015 GAAP net income was $13.6 million, or $0.43 per diluted share, contrast with net income of $9.6 million, or $0.31 per diluted share, in the third quarter of 2014.

Separate from the performance of the two segments highlighted below, the Company’s third-quarter results benefited from its acquisition of RBI, which was accomplished on June 9, 2015. RBI has established itself during the past six years as North America’s fastest-growing provider of solar racking solutions. RBI was accretive to the Company’s third-quarter results, adding adjusted earnings of $0.16 per diluted share on revenues of $81.6 million.

Business Outlook

“We start the fourth quarter fully focused on driving transformational change in our portfolio and in our financial results through the execution of our four-pillar strategy, which comprises operational improvement, portfolio administration, product innovation and acquisitions. In the near term, we are confident that Gibraltar will achieve the three key financial objectives we set for 2015: increasing adjusted earnings, making more efficient use of our capital, and delivering higher shareholder returns than we did in 2014,�? Heard concluded.

Gibraltar is raising its guidance for revenues and earnings for full year 2015. Gibraltar now anticipates to report full-year 2015 total revenues in the range of $990 million to $1.0 billion, an improvement of about 15% contrast to $862 million in 2014. Organic net sales for 2015 in the Company’s base businesses are predictable to be slightly lower, year-over-year, with growth in residential-related product lines offset by a decline in industrial-related revenues. From the June 9, 2015 date of acquisition, RBI is predictable to generate revenues of $155 million to $160 million through December 31, 2015.

The anticipated profit expansion from operational improvement initiatives, in addition to accretion from RBI, are predictable to result in adjusted earnings for 2015 in the range of $0.90 to $0.95 per diluted share, contrast with $0.47 per diluted share in 2014. This range comprises non-GAAP adjusted earnings accretion from RBI in the range of $0.24 to $0.26 per diluted share, not taking into account purchase accounting and transaction expenses.

For the fourth quarter of 2015, revenues and adjusted EPS are predictable to substantially improvement contrast with the fourth quarter of 2014, benefiting from the accretive income from the RBI acquisition and other profit improvement initiatives.

Gibraltar Industries, Inc. manufactures and distributes building products. The company operates in two segments, Residential Products, and Industrial and Infrastructure Products.


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About Travis Garlick 1803 Articles
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