Mondelez Shares Rise On Earnings Beat, Dividend Increase

Mondelez International Inc. shares rose 1.2% in Wednesday premarket trading after the food company reported earnings that beat estimates, a dividend increase, and a new CEO. Mondelez had second-quarter net income of $498 million, or 32 cents per share, up from $464 million, or 29 cents per share, for the same period last year. Adjusted EPS was 48 cents, beating the 46-cent FactSet consensus. Sales totaled $5.99 billion, down from $6.30 billion and below the $6.00 billion FactSet consensus. The company maintained its 2017 guidance for double-digit adjusted EPS growth on a constant-currency basis. Mondelez raised its dividend by 16% to 22 cents. The company also announced that Dirk Van de Put will become chief executive, effective November 2017. He joins from McCain Foods, where he is chief executive. He succeeds Irene Rosenfeld, who will continue as chairman of the board until Mar. 31, 2018, at which point she will retire. Mondelez shares are down 1.6% for the year so far while the S&P 500 index is up 10.6% for the period.