Let's break down some blue- chip stocks for stability when times get tough. This topic feels especially important now, with fears of recession rising. We can see this through the recent spikes in the CBOE Volatility Index. Also known as the "fear index," it is up nearly 130% since July 29. Over the same period, the S&P 500 is down 5%. These changes can cause investors to worry, but that doesn't mean there aren't places to hide in the stock market when things get dicey. Some important metrics I'll highlight ...

Financial Data and Key Metrics - Constant currency net revenue grew 3.4% in Q2, led by strong double-digit growth in the International segment and healthy trends in US refreshment beverages [24] - Operating income grew 11% YoY, with EPS growth of 7% in Q2 [25] - Free cash flow conversion strengthened, with $543 million generated in Q2 [54] - Gross margin expanded by 130 basis points YoY, driven by productivity, pricing, and inflation management [48] Business Line Performance - US Refreshment Beverages: Revenue grew at a low-single-digit rate, led by CSDs, with Dr Pepper maintaining market share growth [39][40] - US Coffee: Net sales declined 2.1%, but pod shipments stabilized with 0.2% growth YoY [50][51] - International: Net sales grew 15.5% (14.7% constant currency), driven by strong volume mix growth of 10.4% and price increases of 4.3% [80][81] Market Performance - US: CSDs outperformed expectations, with Dr Pepper gaining market share due to innovations like Creamy Coconut LTO [40][89] - International: Mexico and Canada showed strong performance, with Peñafiel and Canada Dry driving growth [45][80] - Energy Category: C4 Energy grew 30% in retail sales, with significant growth potential despite recent moderation [106] Strategic Direction and Industry Competition - The company is focusing on partnerships (Electrolit, La Colombe) and innovation to drive growth, with new products like Canada Dry Fruit Splash and Bai WonderWater gaining traction [10][17] - A barbell strategy is being employed to cater to both value-seeking and premium consumers, with affordability initiatives in coffee and premiumization in CSDs [42][43] - The acquisition of Kalil Bottling Company aims to optimize distribution and leverage DSD assets [12][36] Management Commentary on Operating Environment and Outlook - The operating environment remains uneven, with higher-income consumers showing resilience while low and middle-income consumers seek value [6][88] - Management expects top-line acceleration in H2, driven by partnerships and innovation, with mid-single-digit net sales and high-single-digit EPS growth for 2024 [83][85] - Green coffee price inflation and currency volatility are being managed through productivity and cost discipline [13][97] Other Important Information - The company is committed to corporate responsibility, with progress highlighted in the 2023 corporate responsibility report [14][38] - Innovations like the K-Brew + Chill brewer and La Colombe Ready-To-Drink coffee are expected to drive growth in the cold coffee segment [44][132] Q&A Summary Question: Impact of inflation and consumer behavior on CSDs [60] - Response: CSDs remain resilient, offering value to consumers, with Dr Pepper gaining market share. The company is addressing affordability through smaller pack sizes and value messaging [63][89] Question: Back-half sales acceleration drivers [65] - Response: Acceleration is driven by partnerships (Electrolit, La Colombe) and innovation (Creamy Coconut, Bai WonderWater), with no need for significant macro changes [66][67] Question: Green coffee price impact on pricing strategy [116] - Response: Green coffee price increases are factored into guidance, with hedging in place. The company will manage price gaps responsibly while funding high-quality investments [97][143] Question: US Coffee stabilization and back-half outlook [129] - Response: K-Cup volume trends are improving, with four consecutive quarters of sequential growth. Cold coffee initiatives and the K-Brew + Chill brewer are expected to drive further growth [131][132] Question: International growth strategy [139] - Response: The company is focused on Mexico and Canada, with potential for inorganic entry into new markets. International growth is driven by category expansion and route-to-market investments [135][140]

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Shares of Keurig Dr Pepper have returned -4.6% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the n ...

Financial Performance - Basic earnings per share increased to $0.38 from $0.36 year-over-year, while diluted earnings per share also rose to $0.38 from $0.36[10]. - Net income for the quarter was $503 million, compared to $467 million in the previous quarter, reflecting a growth of approximately 7.7%[11]. - The company reported a net income of $515 million for Q2 2024, compared to $503 million in Q2 2023, marking a 2.4% increase[79]. - For the first six months of 2024, net income totaled $969 million, slightly down from $970 million in the same period of 2023[184]. - Basic and diluted EPS for Q2 2024 were both $0.38, compared to $0.36 in Q2 2023, representing a 5.6% increase[79]. - Basic earnings per share for the first half of 2024 was $0.71, compared to $0.69 in the previous period, showing an increase[10]. - Diluted earnings per share also improved to $0.70 from $0.69, reflecting enhanced profitability per share[10]. Revenue and Sales - Total net sales for the company in Q2 2024 were $3,922 million, compared to $3,789 million in Q2 2023, marking an increase of 3.5%[70]. - U.S. Refreshment Beverages segment net sales reached $2,407 million in Q2 2024, up from $2,330 million in Q2 2023, representing a growth of 3.3%[70]. - U.S. Coffee segment net sales decreased to $950 million in Q2 2024 from $970 million in Q2 2023, a decline of 2.1%[70]. - International segment net sales increased to $565 million in Q2 2024 from $489 million in Q2 2023, reflecting a growth of 15.6%[70]. - For the first six months of 2024, net sales increased by $248 million, or 3.5%, to $7,390 million compared to $7,142 million in the prior year[146]. - Net sales increased by 3.8% to $4,500 million in the first six months of 2024, compared to $4,337 million in the prior year period, driven by a favorable net price realization of 4.2%[162]. Expenses and Costs - Selling, general and administrative expenses increased by $23 million, or 1.8%, to $1,295 million for Q2 2024 compared to Q2 2023[129]. - Total lease costs for the first six months of 2024 amounted to $180 million, compared to $149 million in the same period of 2023, an increase of 20.8%[62]. - Interest expense increased by $32 million, or 18.6%, to $204 million for Q2 2024, reflecting increased weighted average borrowings[131]. - Interest expense rose by $187 million to $382 million for the first six months of 2024, primarily due to increased borrowings[150]. Assets and Liabilities - Total stockholders' equity as of June 30, 2024, was $25,268 million, up from $25,126 million as of January 1, 2023, indicating an increase of 0.6%[11]. - Total current assets increased to $3,819 million as of June 30, 2024, compared to $3,375 million at the end of 2023[174]. - Total liabilities increased to $27,626 million as of June 30, 2024, compared to $26,454 million at the end of 2023[174]. - Current liabilities decreased to $5,662 million from $6,749 million, suggesting better short-term financial health[203]. - Non-current liabilities increased to $19,423 million from $16,689 million, which may require monitoring[203]. Cash Flow and Investments - Net cash provided by operating activities was $742 million for the first six months of 2024, compared to $452 million in the prior year period[176]. - Cash and cash equivalents increased to $438 million at the end of the first six months of 2024, up from $278 million at the end of the same period in 2023[185]. - Investments in unconsolidated affiliates increased to $1,468 million as of June 30, 2024, up from $1,387 million at the end of 2023[83]. Shareholder Returns - The company declared dividends of $0.20 per share, totaling $279 million for the quarter[11]. - The company repurchased 35 million shares of its common stock for a total of $1,012 million in March 2024[108]. Operational Metrics - Income from operations for the U.S. Refreshment Beverages segment rose to $717 million in Q2 2024, up from $629 million in Q2 2023, a growth of 14%[70]. - The company reported an income from operations of $861 million in Q2 2024, compared to $769 million in Q2 2023, reflecting a growth of 11.9%[70]. - Income from operations increased by $213 million, or 19.0%, to $1,332 million for the first six months of 2024, compared to $1,119 million for the prior year period, with an operating margin improvement of 380 bps to 29.6%[163]. Taxation - The effective tax rate for Q2 2024 was 23.4%, up from 17.9% in Q2 2023, primarily due to a shift in income mix[84]. - The effective tax rate increased to 23.4% for Q2 2024, up from 17.9% in the prior year, primarily due to a non-cash adjustment and a shift in income mix[132].

A quarter ago, it was expected that this company would post earnings of $0.34 per share when it actually produced earnings of $0.38, delivering a surprise of 11.76%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Keurig Dr Pepper has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? A ...

EXHIBIT 99.1 Keurig Dr Pepper Reports Q2 2024 Results and Reaffirms Fiscal 2024 Guidance Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages Performance Company Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024 BURLINGTON, MA and FRISCO, TX (July 25, 2024) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance. | | | Reported GAAP Basis | Adjusted Basis | 1 | | --- | --- ...

Keurig Dr Pepper reported quarterly earnings and revenue that met analysts' expectations on Thursday as higher prices fueled its U.S. soda sales. Earnings per share: 45 cents adjusted, in line with estimates Revenue: $3.92 billion, in line with estimates Net sales rose 3.5% to $3.92 billion. Volume, which excludes pricing and currency changes, increased 1.8% during the quarter, while prices were up 1.6% compared with the year-ago period. Keurig Dr Pepper's U.S. coffee division's sales shrank 2.1% to $1 bill ...

Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages Performance Company Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024 BURLINGTON, Mass. and FRISCO, Texas, July 25, 2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance. Commenting on the quarter, CEO Tim Cofer stated, "Our second quarter results were healthy, with accelerating net sales trends, sig ...

SOPA Images/LightRocket via Getty Images Firstly, let us look at KDP stock performance in recent years. It has witnessed gains of 15% from levels of $30 in early January 2021 to around $35 now, vs. an increase of about 50% for the S&P 500 over this period. However, the increase in KDP stock has been far from consistent. Returns for the stock were 15% in 2021, -3% in 2022, and -7% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 — indicating that KDP underp ...

Core Viewpoint - Keurig Dr Pepper is expected to report strong quarterly performance driven by brand strength, effective pricing strategies, and product innovation, despite facing challenges from commodity inflation and sluggishness in the Coffee segment [1][4][9]. Financial Performance - The company is anticipated to achieve top and bottom-line growth, with quarterly revenues estimated at $3.90 billion, reflecting a 3% increase year-over-year [2]. - The consensus estimate for earnings per share is 45 cents, indicating a 7.1% year-over-year increase [6]. - In the last reported quarter, Keurig Dr Pepper delivered an earnings surprise of 11.8%, with an average surprise of 5.2% over the trailing four quarters [3]. Market Position and Valuation - Keurig Dr Pepper's shares have increased by 6.6% over the past six months, outperforming the industry growth of 5.9% [8]. - The stock is trading at a forward 12-month price-to-earnings ratio of 16.62x, which is below its five-year high of 23.7x and the industry average of 20.75x, presenting an attractive investment opportunity [5]. Challenges - The company is facing rising costs due to commodity inflation and increased marketing investments, which are impacting profitability [4]. - There has been sluggish performance in the Coffee segment, with lower volumes and declines in K-pod shipments affecting results [9].