Core Viewpoint - Keurig Dr Pepper, Inc (KDP) reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.55 per share a year ago, indicating a positive earnings surprise of 1.75% [1][2] Financial Performance - The company achieved revenues of $4.07 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.96%, and up from $3.87 billion in the same quarter last year [2] - Over the last four quarters, KDP has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - KDP shares have increased approximately 6.2% since the beginning of the year, outperforming the S&P 500, which gained 1.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.40 on revenues of $3.67 billion, and for the current fiscal year, it is $2.03 on revenues of $16.21 billion [7] Industry Context - The Beverages - Soft drinks industry, to which KDP belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Net sales for full year 2024 increased 3.6% to $15.35 billion, with constant currency growth of 3.9% driven by volume/mix growth of 2.7% and favorable net price realization of 1.2%[3]. - Adjusted diluted EPS for full year 2024 increased 7.8% to $1.92, supported by adjusted operating income growth of 9.0% to $4.0 billion, which accounted for 25.9% of net sales[5]. - For Q4 2024, net sales increased 5.2% to $4.07 billion, with constant currency growth of 6.2% driven by volume/mix growth of 5.3%[14]. - The company expects mid-single-digit net sales growth and high-single-digit adjusted EPS growth for 2025 on a constant currency basis, including contributions from the GHOST acquisition[24]. - The total change in net sales for 2024 was 3.9%, with U.S. Refreshment Beverages growing by 5.8% and International sales increasing by 9.2%[74]. Cash Flow and Capital Allocation - Operating cash flow for full year 2024 increased 67% to $2.2 billion, while free cash flow grew 82% to $1.7 billion, enabling balanced capital allocation[4]. - Free cash flow for the year ended December 31, 2024, was $2,219 million, an increase from $1,329 million in 2023[46]. - The net cash provided by operating activities for 2024 was $2,219 million, compared to $1,329 million in 2023[78]. Segment Performance - U.S. Refreshment Beverages segment net sales for full year 2024 increased 5.8% to $9.3 billion, driven by volume/mix growth of 2.7% and favorable net price realization of 3.1%[7]. - International segment net sales for full year 2024 increased 6.8% to $2.1 billion, with constant currency growth of 9.2% driven by volume/mix growth of 6.2% and favorable net price realization of 3.0%[11]. - For Q4 2024, total net sales increased by 5.2%, with U.S. Refreshment Beverages up 10.3% and U.S. Coffee down 2.4%[63]. - The U.S. Coffee segment experienced a decline in sales of 2.6% for the year ended December 31, 2024[74]. Profitability and Margins - Adjusted operating income for Q4 2024 increased 3.4% to $1.13 billion, totaling 27.7% of net sales, reflecting net sales growth and productivity savings[15]. - For Q4 2024, reported gross profit was $2,277 million with a gross margin of 55.9%[58]. - For the year ended December 31, 2024, reported gross profit was $8,529 million, with a gross margin of 55.6%[65]. - The company reported a total operating margin of 1.5% for Q4 2024, with an adjusted margin of 27.7%[63]. - The operating margin for U.S. Refreshment Beverages in 2024 was 30.7%, while the total operating margin was 25.9%[74]. Impairments and Restructuring - The company recognized an impairment of goodwill and other intangible assets amounting to $718 million in Q4 2024[60]. - The company incurred restructuring expenses related to the 2023 CEO succession totaling $24 million in Q4 2024[60]. - The company incurred restructuring costs of $51 million related to the 2024 Network Optimization[75]. - Adjusted EBITDA for the year ended December 31, 2024, was significantly impacted by impairments totaling $718 million, including $306 million for goodwill and $412 million for other intangible assets[41][46]. Assets and Liabilities - Total assets increased to $53,430 million as of December 31, 2024, up from $52,130 million in 2023[44]. - Total liabilities rose to $29,187 million in 2024, compared to $26,454 million in 2023[44]. - The company’s cash and cash equivalents increased to $510 million in 2024, compared to $267 million in 2023[44]. Tax and Income - The effective tax rate for the year ended December 31, 2024, was 24.7%[68]. - Adjusted net income for the year ended December 31, 2024, was $2,632 million, with diluted earnings per share of $1.92[68]. - For the year ended December 31, 2023, adjusted net income was $2,518 million, reflecting a 7.3% increase year-over-year[71]. - The company reported a net loss of $144 million for Q4 2024, compared to a net income of $693 million in Q4 2023[41].

Core Insights - The upcoming earnings report for Keurig Dr Pepper, Inc (KDP) is projected to show quarterly earnings of $0.57 per share, reflecting a 3.6% increase year-over-year [1] - Analysts anticipate revenues of $4.03 billion, which represents a 4.2% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 1.8% in the last 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Key Metrics Forecast - Analysts estimate 'Net Sales- U.S. Coffee' to reach $1.14 billion, a decrease of 1.4% from the prior-year quarter [5] - 'Net Sales- International' is expected to be $515.04 million, showing an increase of 4.1% year-over-year [5] - 'Net Sales- U.S. Refreshment Beverages' is forecasted to reach $2.37 billion, indicating a 7.1% increase from the previous year [5] Stock Performance - KDP shares have increased by 4.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.6% [6] - KDP holds a Zacks Rank of 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - Keurig Dr Pepper Inc. (KDP) is expected to report a solid performance in its fourth-quarter 2024 results, with anticipated year-over-year increases in both revenues and earnings per share [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $4.03 billion, reflecting a 4.2% increase from the same quarter last year [2]. - The consensus estimate for quarterly earnings is 57 cents per share, indicating a 3.6% increase year-over-year, although this figure has decreased by one cent in the past 30 days [2]. - KDP has a trailing four-quarter earnings surprise average of 3.4% [2]. Key Growth Drivers - KDP's consumer-focused innovation model is expected to drive market share gains, supported by metrics tracking awareness, household penetration, and loyalty [3]. - The company's strategic focus on innovation, brand activity, and strong commercial execution, along with disciplined capital management, positions it for sustained growth in key categories such as liquid refreshment beverages, K-Cup pods, and brewers [3]. Operational Expansion - Recent asset integration in Arizona and an extended distribution footprint in Tennessee are expected to enhance KDP's operational reach [4]. - The Direct Store Delivery network in Mexico provides a competitive advantage in a market reliant on traditional trade, with ongoing investments showing strong growth trends [4]. Full-Year Guidance - Management has reaffirmed its full-year guidance, expecting mid-single-digit constant-currency net sales growth and high-single-digit adjusted earnings per share growth for 2024 [5]. Segment Performance - The Refreshment Beverages segment is projected to generate $2.4 billion in revenues, marking a 4.7% year-over-year increase, driven by strong sales and a favorable product mix [6]. - Growth in carbonated soft drinks (CSDs) is attributed to affordable pricing and strategic marketing efforts [6]. Brand Strength and Marketing - KDP's strong market share momentum is expected to continue, bolstered by successful innovation and brand strength [7]. - Popular products like Dr Pepper's creamy coconut flavor and expanding zero-sugar options are anticipated to gain traction, supported by marketing campaigns [7]. Valuation Perspective - KDP stock is trading at a forward 12-month price-to-earnings ratio of 15.98x, below its five-year high of 23.33x and the industry average of 18.41x, indicating compelling value for investors [9]. - Over the past three months, KDP shares have increased by 1.7%, compared to the industry's growth of 2.3% [10].

Core Insights - Albert Anthony is a Croatian-American media personality active on investor platforms, focusing on markets and stocks, with a growing follower base of over 1,000 since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in a top-10 financial firm's IT department [1] Company Profile - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and is wholly owned by Albert Anthony [1] - The company does not provide personalized financial advisory services but offers general market commentary based on publicly available data [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio [1] - The company emphasizes the importance of due diligence for investors, indicating that all investments carry risk [1]

Group 1 - Keurig Dr Pepper's Board of Directors declared a quarterly cash dividend of $0.23 per share, payable on April 11, 2025, to shareholders of record on March 28, 2025 [1] - The company has an annual revenue of approximately $15 billion and holds leadership positions in various beverage categories including soft drinks, coffee, tea, water, juice, and mixers [2] - Keurig Dr Pepper operates with a portfolio of over 125 brands and is recognized for having the 1 single serve coffee brewing system in the U.S. and Canada [2] Group 2 - The company employs around 28,000 individuals and is driven by a purpose to enhance beverage experiences while making a positive impact on communities and the planet [2]

Core Viewpoint - Keurig Dr Pepper Inc. (KDP) is experiencing growth driven by brand strength, pricing strategies, and product innovation, positioning the company well for future growth [1][4]. Group 1: Company Strategies and Performance - KDP's consumer-focused innovation model and strong brand loyalty have enhanced its market share in key categories such as liquid refreshment beverages and K-Cup pods across major markets in the U.S., Mexico, and Canada [3]. - The company's growth is attributed to a strategic mix of innovation, brand activity, and strong commercial execution, supported by cost efficiency and disciplined capital management [4]. - KDP's Refreshment Beverages segment has shown continued strength, with robust sales and a favorable product mix, particularly following the transition of Electrolit [6]. Group 2: Recent Developments - KDP announced the acquisition of a 60% stake in GHOST Lifestyle LLC, known for its GHOST Energy drinks, with an option to acquire the remaining 40% by 2028, highlighting a focus on high-growth partnerships [5]. - The company is facing challenges in its coffee segment, with a 3.6% year-over-year sales decline in the U.S. and a net price drop of 6.3% [8][10]. Group 3: Financial Outlook - KDP stock is currently trading at a price/earnings ratio of 15.21, which is lower than the industry average of 17.44 and its median of 18.73, indicating an appealing valuation [7]. - The Zacks Consensus Estimate for KDP's 2025 sales and earnings per share (EPS) is projected at $16.24 billion and $2.04, reflecting year-over-year growth of 6% and 6.3% respectively [12].

"Our 2025 cold beverage pipeline builds on our strong track record of delivering successful consumer-centric innovation across our portfolio of legendary brands," said Eric Gorli, President, U.S. Refreshment Beverages at Keurig Dr Pepper. "Our experts, from flavor scientists to trend spotters, have crafted a dynamic lineup across soft drinks, waters, teas and juices that will offer consumers nationwide even more choice through new fruit flavors, modern twists on familiar favorites and zero sugar options." N ...

Earnings Release and Conference Call - Keurig Dr Pepper Inc will release its financial results for Q4 and full year 2024 on February 25 2025 before market open [1] - The company will hold a conference call on February 25 2025 at 8:00 AM ET to discuss the results hosted by CEO Tim Cofer and CFO Sudhanshu Priyadarshi [1] - Investors and analysts can access the call by dialing (833) 629-0615 in the US/Canada or (412) 317-1824 internationally [2] - A replay of the call will be available from February 25 2025 at 11:00 AM ET until March 11 2025 by dialing (877) 344-7529 or (412) 317-0088 with conference ID 9999316 [2] - Live audio webcast and replay will be available on the company's website [3] Company Overview - Keurig Dr Pepper is a leading North American beverage company with over 125 owned licensed and partner brands [4] - The company has annual revenue of approximately $15 billion [4] - It holds leadership positions in soft drinks coffee tea water juice and mixers and has the 1 single serve coffee brewing system in the US and Canada [4] - The company's innovative partnership model builds growth platforms in premium coffee energy sports hydration and ready-to-drink coffee [4] - Key brands include Keurig Dr Pepper Canada Dry Mott's A&W Snapple Peñafiel 7UP Green Mountain Coffee Roasters Clamato Core Hydration and The Original Donut Shop [4] - The company has 28 000 employees and aims to enhance beverage experiences and make a positive impact on people communities and the planet [4] Contact Information - Investor Relations can be reached at 888-340-5287 or [email protected] [4] - Media inquiries can be directed to Katie Gilroy at 781-418-3345 or [email protected] [4]

Keurig Dr Pepper Inc. (KDP) is currently trading at a notably low price-to-earnings (P/E) multiple, which is below the Zacks Beverages - Soft Drinks industry and broader Consumer Staples averages. KDP's forward 12-month P/E ratio is 15.40X, lower than the industry average of 17.18X and the sector average of 116.15X.KDP Stock's P/E Performance Image Source: Zacks Investment ResearchThe stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the co ...