Burlington-based Keurig Dr Pepper Inc. (KDP) is a non-alcoholic beverage company. It manufactures and distributes beverages and single-serve brewing systems in the U.S. and internationally. With a market cap of around $49.3 billion, Keurig Dr Pepper operates through the U.S. Refreshment Beverages, U.S. Coffee, and International segments. The beverage giant is expected to release its third-quarter earnings before the market opens on Thursday, Oct. 24.
Ahead of the event, analysts expect Keurig Dr Pepper to report a profit of $0.51 per share, up 6.3% from $0.48 per share reported in the year-ago quarter. The company has surpassed or met Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 7.1% year over year to $0.45, meeting the consensus estimates.
For fiscal 2024, analysts expect Keurig Dr Pepper to report an adjusted EPS of $1.92, up 7.3% from $1.79 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to further grow by 7.3% to $2.06.
KDP has gained 8.5% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 19.4% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 12% returns during the same time frame.
Shares of Keurig Dr Pepper experienced a 1.3% uptick on Jul. 25, maintaining positive momentum over the subsequent two trading sessions after the release of its impressive Q2 earnings report. The company exceeded Wall Street’s revenue projections, posting a 3.5% year-over-year increase, totaling $3.9 billion. Its net income grew by 2.4% to $515 million.
Additionally, Keurig Dr Pepper reaffirmed its full-year guidance, projecting mid-single-digit growth in constant currency net sales and high-single-digit growth in adjusted EPS. This reaffirmation has further strengthened investor confidence in the KDP’s prospects.
The consensus opinion on the KDP stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 16 analysts covering the stock, eight recommend “Strong Buy,” one advises “Moderate Buy,” and seven suggest a “Hold” rating.
The mean price target of $37.82 suggests a potential upside of 4.6% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
