With a market cap of $42.3 billion, Keurig Dr Pepper Inc. (KDP) is a leader in beverages and single-serve brewing systems, delivering iconic brands like Dr Pepper, Green Mountain Coffee Roasters, and Snapple across the U.S., Canada, and international markets. The company’s innovative portfolio spans soft drinks, specialty coffee, tea, and ready-to-drink products, serving diverse customers from retailers to hospitality and online platforms. The Burlington, Massachusetts-based company is expected to announce its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 25.
Ahead of this event, analysts expect the beverage giant to report a profit of $0.58 per share, up 5.5% from $0.55 per share in the year-ago quarter. The company has met or surpassed Wall Street's earnings estimates in the last four quarters. In Q3, KDP met the consensus EPS estimate of $0.51.
For fiscal 2024, analysts expect KDP to report an EPS of $1.92, up 7.3% from $1.79 in fiscal 2023. Moreover, EPS is expected to grow 6.3% year-over-year to $2.04 in fiscal 2025.
Shares of KDP have risen marginally over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 25.3% surge and the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.8% return over the same period.
Keurig Dr Pepper's stock dropped 4.8% on Oct. 24 due to its weaker-than-expected Q3 revenue of $3.9 billion, driven by a 3.6% decline in U.S. coffee sales to $976 million, which reflected falling K-Cup pod prices and demand. Despite U.S. Refreshment Beverages sales growth, weak coffee performance and flat international sales of $525 million weighed on overall results. Additionally, the announcement of a $990 million acquisition for a 60% stake in GHOST Beverages, with plans to invest $250 million in transitioning GHOST’s distribution agreements to Keurig’s network, raised concerns.
Analysts' consensus view on Keurig Dr Pepper’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine recommend "Strong Buy," one suggests "Moderate Buy," and seven indicate “Hold.” As of writing, KDP is trading below the average analyst price target of $37.44.
