- Keurig Dr Pepper’s volume/mix at constant currency increased by 6.4%, significantly beating the estimate of a 0.59% increase.
- US Refreshment Beverages volume/mix saw a substantial rise of 11.2%.
- US Coffee volume/mix decreased by 4%.
- International volume/mix at constant currency increased by 4%.
- The company reported adjusted earnings per share (EPS) of 54 cents.
- Total net sales reached $4.31 billion.
- US Refreshment Beverages accounted for $2.74 billion of net sales.
- US Coffee generated $991 million in net sales.
- International operations contributed $580 million to net sales.
- Net price realization at constant currency was up by 4.2%.
- There was a 3.2% change in the US Refreshment Beverages price.
- International net price at constant currency increased by 6.1%.
- Adjusted operating income for the quarter was $1.09 billion.
- Foreign currency translation is expected to create a small headwind of half a percentage point on full-year growth.
- The company raised its full-year constant currency net sales growth outlook and reaffirmed its adjusted EPS guidance.
- Market analysts showed interest in the shares with 13 buy ratings, 7 holds, and 1 sell recommendation.
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Keurig Dr Pepper on Smartkarma
Keurig Dr Pepper (KDP) has garnered significant analyst coverage on Smartkarma, an independent investment research network. According to insights from Baptista Research, KDP’s strategic move to acquire JDE Peet’s for $23 billion and subsequent plan to split into two standalone companies—Global Coffee Co. and Beverage Co.—is set to reshape the global beverage industry. The acquisition, priced at a premium, aims to create value for shareholders through a tax-free spin-off of the coffee business, positioning KDP as a key player in the coffee market.
Analyst Garvit Bhandari also views KDP’s two-step transaction positively, anticipating value accretion for shareholders as the company separates its coffee business to create the world’s largest pure-play coffee company. With a focus on retaining its North American refreshment beverages portfolio, KDP’s move is seen as appealing to distinct investor bases. The recent earnings performance of KDP, as highlighted by Baptista Research, demonstrates resilience and growth potential, showcasing the company’s strength in the market.
A look at Keurig Dr Pepper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Keurig Dr Pepper, a company known for manufacturing and distributing a variety of non-alcoholic beverages, has been awarded impressive Smart Scores across different factors. With high marks in Value and Dividend, as well as decent scores in Growth and Resilience, the company seems to be positioned well for the long term. While the Momentum score is moderate, Keurig Dr Pepper’s overall outlook remains positive.
Based in the United States, Keurig Dr Pepper serves customers not only in its home country but also in Canada and Mexico. The company’s diverse portfolio consisting of soft drinks, juices, teas, mixers, and water gives it a strong foothold in the beverage market. Investors may find interest in this company given its solid performance across various key factors analyzed by Smartkarma.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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