DEERFIELD, Ill. (AP) — Shares of Mondelez International Inc. jumped Thursday after the snack maker reported better-than-expected earnings for the second quarter due to reduced expenses.
The Deerfield, Illinois-based company said cost-saving measures in delivery and production helped boost its bottom line despite foreign currency pressures.
CEO Irene Rosenfeld said in a statement that the company would use the savings to "step up investments in marketing, sales and capacity expansion to accelerate revenue growth and improve market share."
Mondelez reported net income of $406 million, or 25 cents per share, for the three months ended June 30 compared with $622 million, or 36 cents per share, in the prior-year period. Excluding non-recurring costs and restructuring costs, the company earned 47 cents per share.
The adjusted results topped Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 39 cents per share.
Company shares rose $2.15, or 5 percent, to $45.25 in afternoon trading. Its shares are up 22 percent over the past year.
The maker of Oreo cookies, Cadbury chocolate and Trident gum posted revenue of $7.66 billion in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $7.48 billion. Sales were dampened 13.6 percent due to negative currency headwinds.
Mondelez shares have climbed 19 percent since the beginning of the year, while the Standard & Poor's 500 index has risen slightly more than 2 percent. The stock has climbed 13 percent in the last 12 months.