NEW YORK (TheStreet) -- Mondelez International (MDLZ) - Get Mondelez International, Inc. Class A (MDLZ) Report stock is falling by 0.77% to $42.47 in afternoon trading on Monday, after the company announced it launched a partnership with startups and retailers to improve marketing and consumer retail experience.
The company choose eight startups that will work with major retailers and Mondelez brands to develop and pilot new ideas on shopper experience and marketing innovations.
"Through our 90-day collaboration process, we're looking forward to putting real solutions in market to solve pressing retail challenges and help unlock growth for our retailers and categories," Kim Yansen, director of field shopper marketing, said in a statement.
The pilots will then be considered by Mondelez for broader uses as the company seeks to improve its financial performance.
Additionally, Mondelez marketing team in North America may face structural changes in 2016, including job cuts, to improve its productivity, Ad Age reported.
Separately, TheStreet Ratings team rates MONDELEZ INTERNATIONAL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONDELEZ INTERNATIONAL INC (MDLZ) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 42.49% is the gross profit margin for MONDELEZ INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.29% is above that of the industry average.
- MONDELEZ INTERNATIONAL INC's earnings per share declined by 30.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, MONDELEZ INTERNATIONAL INC reported lower earnings of $1.27 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($1.78 versus $1.27).
- MDLZ, with its decline in revenue, slightly underperformed the industry average of 8.6%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Food Products industry and the overall market, MONDELEZ INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MDLZ Ratings Report