Mondelez OKs Share Buyback Program - Analyst Blog
14 Marzo 2013 - 1:10PM
Zacks
The board of directors of Mondelez International,
Inc. (MDLZ) recently authorized the repurchase of shares
worth $1.2 billion or 40 million shares, whichever is less. The
duration of the share repurchase program is three years.
Mondelez International focuses on the global food and snacks
business of the erstwhile Kraft Foods. It markets products in fast
growing food categories like chocolates, biscuits, gum, candy,
coffee and powdered beverages, which includes several popular
brands like TANG, Oreo, Cadbury. On Oct 1, erstwhile Kraft Foods
spun off its North American grocery business into a separate
independent company, Kraft Foods Group, Inc.
(KRFT).
The authorization of the share repurchase program followed the
company’s declaration to pay a cash dividend of 13 cents per share
on Apr 15, 2013 to shareholders of record as of Apr 1, 2013. The
company is able to return value to its shareholders as its
liquidity position is strong with $4.48 billion in cash and cash
equivalents as of Dec 31, 2012.
Mondelez International missed on both the top and bottom lines
in its fourth quarter 2012 mainly due to currency headwinds.
However, the company raised its financial outlook for 2013.
Mondelez International raised its 2013 operating EPS guidance to
the range of $1.52–$1.57 from the previous range of $1.50–$1.55 per
share to reflect lower headwinds from currency.
Mondelez International carries a Zacks Rank #3 (Hold) as the
company is still in a transitional stage and it is likely to take
some time to stabilize.
Some food companies that are worth a look include Flower
Foods Inc. (FLO) and J&J Snack Foods
Corp. (JJSF) both carrying a Zacks Rank #1 (Strong
Buy).
FLOWERS FOODS (FLO): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis Report
MONDELEZ INTL (MDLZ): Free Stock Analysis Report
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