Closing Bell: Mondelez Earnings, Starbucks Sales Miss, Novo Nordisk Selloff

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- Mondelez (MDLZ) posted quarterly results that topped estimates, but reiterated its annual outlook. The company reported better-than-expected sales for the second quarter, citing strong pricing execution in its chocolate business. The owner of the Oreo, Ritz and Cadbury brands reported adjusted earnings per share of 73 cents, topping analysts’ expectations for 68 cents. Sales totaled $8.98 billion, better than the $8.84 billion that analysts had expected. Chief Executive Officer Dirk Van de Put said the company remained confident in its ability to deliver “amid a challenging environment” and cited “robust growth across the vast majority of our geographies.”

- Starbucks (SBUX) sales and profit fell more than anticipated, signaling that a plan to revive growth by speeding up service and making cafes more welcoming has yet to bear fruit. Comparable sales dropped 2% in the fiscal third quarter, the company said Tuesday, while analysts polled by Bloomberg foresaw a 1.5% decline. Earnings excluding some items were 50 cents a share, well below the 65 cents that analysts had anticipated.Starbucks is in the throes of a turnaround after suffering an uncharacteristic streak of same-store sales declines over the past year and a half. Chief Executive Officer Brian Niccol, who took over in September, is betting he can give the US business a jolt by cutting down wait times, revamping the menu and remodeling stores to restore seating. Shares of Starbucks rose 2.2% in extended New York trading at 4:11 p.m. The stock had gained 1.9% this year through the latest close, lagging the 8.3% rise of the S&P 500 Index.

- Novo Nordisk (NOVOB DC) named its head of international operations as chief executive officer after slumping weight-loss drug sales led to a profit warning that wiped $93 billion off its market value. Maziar Mike Doustdar, an insider who has spent more than three decades at the Danish drugmaker, will need to lead a turnaround drive as the company loses ground to Eli Lilly & Co. in the obesity market. The appointment came shortly after Novo slashed its financial forecast, predicting this year’s sales will grow 8% to 14%, while operating profit expands 10% to 16%, based on constant exchange rates. That compares with its previous growth forecasts of as much as 21% and 24%, respectively.

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