Keurig Dr Pepper Inc. (KDP), with a market cap of $43.7 billion, dominates the beverage industry with a wide range of products and the top single-serve coffee system in the U.S. Based in Burlington, Massachusetts, the company is expected to release its fiscal Q2 earnings results before the market opens on Thursday, Jul. 25.
Ahead of this event, analysts expect KDP to report a profit of $0.45 per share, up 7.1% from $0.42 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. Steady demand for its high-priced sodas and tonic water helped the company surpass the consensus EPS estimate by 11.8% in the most recent quarter.
For fiscal 2024, analysts expect KDP to report EPS of $1.92, up 7.3% from $1.79 in fiscal 2023.
Keurig Dr Pepper has risen by 1.4% rise over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 26.9% gain but surpassing the Nasdaq Food & Beverage ETF's (FTXG) 10.6% decline during the same period.
Shares of Keurig Dr Pepper declined 3.9% after its Q4 earnings report on Feb. 22 due to lower-than-expected sales, attributed to reduced consumer demand following price hikes on beverages, despite meeting profit estimates and forecasting strong earnings for 2024. However, the stock rose 4.6% on Apr. 25 following its Q1 earnings report, which exceeded Wall Street expectations due to strong sales of high-margin sodas and tonic water, supported by effective price increases amid stable consumer demand for at-home beverages.
Analysts' consensus view on Keurig Dr Pepper stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 16 analysts covering the stock, eight recommend a "Strong Buy," one has a "Moderate Buy" rating, and seven give a "Hold" rating.
The average analyst price target for KDP is $36.72, suggesting a potential upside of 13.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
