Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Keurig Dr Pepper, Inc (KDP) due to higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - The company is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year increase of +7.1% [3] - Revenues are projected to be $3.9 billion, representing a 3% increase from the previous year [15] Estimate Revisions and Predictions - Recent estimate revisions indicate a bearish outlook from analysts, resulting in an Earnings ESP of -1.46%, suggesting difficulty in predicting an earnings beat [7][8] - The consensus EPS estimate has been revised 0.04% lower over the last 30 days, indicating a reassessment by covering analysts [15] Earnings Surprise History - Over the last four quarters, Keurig Dr Pepper has consistently beaten consensus EPS estimates [10] - For the last reported quarter, the company was expected to post earnings of $0.34 per share but delivered $0.38, resulting in a surprise of +11.76% [19] Zacks Rank and Predictive Power - The company currently holds a Zacks Rank of 4 (Sell), which complicates the prediction of an earnings beat [18] - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a higher Zacks Rank [17]

Core Strategy - Keurig Dr Pepper's enterprise strategy focuses on five pillars aimed at sustainable growth, including consumer-focused brand building, beverage portfolio management, route-to-market advantages, growth fuel production, and dynamic capital allocation [1] - The company has demonstrated consistent strength in its brand portfolio and in-market execution, which has positively impacted revenues and is expected to help navigate a challenging operating environment [1] Acquisition - The company has agreed to acquire the production, sales, and distribution assets of Kalil Bottling Co., expected to conclude in Q3 2024, which will enhance its bottling and distribution capabilities in Arizona for major brands [2] Financial Performance - Keurig Dr Pepper's shares have increased by 6% over the past three months, outperforming the industry average increase of 2.4% [3] - The Zacks Consensus Estimate for 2024 sales and EPS is projected at $15.43 billion and $1.92, indicating year-over-year growth of 4.1% and 7.3% respectively [12] - For 2025, the estimates stand at $15.99 billion in sales and $2.06 in EPS, suggesting increases of 3.7% and 7.2% year-over-year [12] Segment Performance - The Refreshment Beverages segment has benefited from higher net price realization, with sales in the U.S. segment rising 4.3% year-over-year to $2.1 billion in Q1 2024 [15] - The company is experiencing market share gains in its Canadian coffee business, particularly with Keurig brewers and the Van Houtte brand [10] Challenges - The company faces persistent cost pressures in transportation, warehousing, and labor, along with higher marketing investments, which are impacting profitability [7] - The U.S. Coffee segment saw a 2.1% year-over-year sales decline in Q1 2024, attributed to a net price drop of 1.8% and a slight volume/mix decrease of 0.3% [7]

Access to a live audio webcast and replay of the event will be available in the Investors section of the Company's corporate website, www.keurigdrpepper.com. Media: Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of approximately $15 billion, we hold leadership positions in beverage categories i ...

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Keurig Dr Pepper, Inc is currently sporting a Zacks Rank of #2 (Buy). Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Has Keurig Dr Pepper, Inc (KDP) been one of those stocks this year? Let's take a closer loo ...

Core Insights - The Coca-Cola Company and PepsiCo have been in a long-standing competition known as the Cola Wars, with recent developments indicating a shift in market positions [1][10] - Keurig Dr Pepper has reportedly matched Pepsi in market share for carbonated beverages, marking a significant change after nearly 40 years [10][11] - Despite the shift in rankings, Pepsi's diverse product portfolio, including snacks, continues to support its profitability [6][15] Market Position - Dr Pepper has overtaken Pepsi in carbonated beverage sales volume, with both brands holding an 8.3% market share in 2023, while Coca-Cola leads with 19.2% [11][10] - In the year 2000, Pepsi held a 13.5% market share compared to Dr Pepper's 6.3%, highlighting a significant change over the past two decades [11] Financial Performance - Keurig Dr Pepper's earnings per share (EPS) have more than doubled over the last five years, and its dividend growth has outpaced many peers, although its price-to-earnings (P/E) ratio has halved [5][13] - The current dividend yield for Keurig Dr Pepper is approximately 2.5%, which is near its historical highs, indicating potential for future earnings growth [13] Business Strengths - Pepsi's snack division, particularly Frito-Lay North America, accounted for 57% of its operating profit in Q1 2024, underscoring the importance of its diversified portfolio [15] - Both Keurig Dr Pepper and Pepsi have strong brand portfolios, with Pepsi still holding significant positions in the market with brands like Mountain Dew and Diet Pepsi [14] Future Outlook - The growth potential for Keurig Dr Pepper lies in its diverse brand portfolio, which includes both carbonated beverages and coffee, suggesting opportunities for market share expansion [12] - Investors in Pepsi are encouraged to maintain their positions, as the company remains a major player in the consumer goods sector with ongoing profit growth, particularly in international markets [16][17]

In addition, management highlighted an evolving enterprise strategy, which focuses on five pillars to deliver sustainable growth. These comprise a road map to guide the company's employees' actions every day with directives to champion consumer-obsessed brand building, shape its now and next beverage portfolio, amplify the route-to-market advantage, produce fuel for growth and dynamically allocate capital. Keurig Dr Pepper is experiencing strong market share gains across categories. In the first quarter, ac ...

Keurig Dr Pepper Inc. (KDP) appears encouraging, thanks to its robust business strategies. The company has been gaining from expansion initiatives, innovation, brand strength and pricing actions. In the latest development, it has agreed to acquire the entire production, sales and distribution assets of independent bottler Kalil Bottling Co. (Kalil). Let's Delve Deeper The acquisition is likely to conclude in the third quarter of 2024. However, the terms of the agreement have been kept under cover. This acqu ...

Acquisition creates first Company-owned manufacturing, sales and distribution operations in Arizona BURLINGTON, Mass. and FRISCO, Texas, May 31, 2024 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today announced an agreement to acquire all production, sales and distribution assets of independent bottler Kalil Bottling Co. (Kalil). With the agreement, KDP's Company-owned direct-store-delivery (DSD) operations will gain new bottling and distribution rights in Arizona to key KDP brands including Canada Dry, 7 ...

Keurig Dr Pepper Inc. (KDP) seems well-poised for growth, thanks to its robust business strategies. The company has been gaining from expansion initiatives, innovation, brand strength and pricing actions. It has also been launching various products and expanding distribution across the international markets. Buoyed by such strengths, shares of this energy drinks and alternative beverages' marketer have gained 8.2% against the industry's 0.6% drop over the past year. Analysts seem quite optimistic about the ...

The company's profits are above expectations.Shares of coffee and carbonated beverage giant Keurig Dr Pepper (KDP 4.07%) popped on Thursday after the company reported soaring profits in its latest quarterly financial report. As of 2:40 p.m. ET, Keurig Dr Pepper stock was up 4% but it had been up almost 7% earlier in the day.Profits are up more than salesKeurig Dr Pepper mostly sells coffeemakers, coffee brewing supplies, and packaged beverages. In the first quarter of 2024, the company's net sales were only ...