Keurig Dr Pepper Earnings: What To Look For From KDP

Max Juang /
2024/04/24 3:03 am EDT

Beverage company Keurig Dr Pepper (NASDAQ:KDP) will be reporting earnings tomorrow before market hours. Here's what to expect.

Last quarter Keurig Dr Pepper reported revenues of $3.87 billion, up 1.7% year on year, missing analyst expectations by 1%. It was a mixed quarter for the company, with gross margin and EPS exceeding expectations. On the other hand, its operating margin and its revenue missed Wall Street's estimates as its sales volumes shrunk.

Is Keurig Dr Pepper buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Keurig Dr Pepper's revenue to grow 1.8% year on year to $3.41 billion, slowing down from the 8.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.

Keurig Dr Pepper Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days.The company missed Wall St's revenue estimates twice over the last two years.

Looking at Keurig Dr Pepper's peers in the consumer staples segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Constellation Brands delivered top-line growth of 7.1% year on year, beating analyst estimates by 2% and General Mills reported revenue decline of 0.5% year on year, exceeding estimates by 2.7%. Constellation Brands traded up 1.2% on the results, and General Mills was up 2.9%.

Read our full analysis of Constellation Brands's results here and General Mills's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share price declining 3.2% over the last month. Keurig Dr Pepper is up 3.2% during the same time, and is heading into the earnings with analyst price target of $34.9, compared to share price of $31.7.

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