Keurig Dr Pepper Tops Q4 Estimates, Sees Strong Growth Ahead

Keurig Dr Pepper (NASDAQ:KDP) delivered fourth-quarter results that surpassed analyst expectations, driving a 4% gain in shares as investors responded to strong revenue growth and an upbeat 2025 outlook.

The beverage giant posted adjusted earnings per share of $0.58, slightly beating the $0.57 consensus estimate. Revenue climbed 5.2% year-over-year to $4.07 billion, exceeding the $4.02 billion forecast and reinforcing consistent financial performance in line with long-term growth targets.

The U.S. Refreshment Beverages segment led the quarter, with net sales jumping 10.3% to $2.4 billion, fueled by a 7.5% increase in volume/mix and a 2.8% rise in pricing. However, the U.S. Coffee segment struggled, with net sales declining 2.4% to $1.1 billion, despite a 1.1% uptick in K-Cup pod shipments.

Looking ahead, Keurig Dr Pepper remains optimistic about 2025, forecasting mid-single-digit net sales growth and high-single-digit adjusted EPS growth on a constant currency basis. The company expects its recent acquisition of GHOST to contribute to performance, further strengthening its market position in the beverage industry.

• The consensus price target for KDP has decreased from $38.33 to $35.5, indicating a potential reassessment of the company's future growth prospects.
• RBC Capital remains optimistic about KDP, setting a higher price target of $43, suggesting confidence in the company's strategic initiatives and market position.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a significant contender in the beverage industry, offering a diverse portfolio of products across segments like Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. With well-known brands such as Dr Pepper, Canada Dry, and Snapple, KDP competes with other consumer defensive companies like Kimberly-Clark.

The consensus price target for KDP's stock has seen a decline over the past year, dropping from $38.33 to $35.5. This shift may reflect changing market conditions or company performance. Despite this, RBC Capital has set a higher price target of $43, suggesting optimism about KDP's future, as highlighted by RBC Capital.

KDP's upcoming fourth-quarter earnings are expected to benefit from innovation and growth in its Refreshment Beverages segment. The company's strategic initiatives in expanding its product offerings are anticipated to positively impact its financial performance. Investors are watching closely to see if KDP will exceed expectations in its earnings report.

Piper Sandler analyst Michael Lavery has initiated coverage on KDP with a Neutral rating and a target price of $35. While KDP faces challenges in its coffee segment, there is potential for growth in the energy drink market. This could influence future stock performance and investor sentiment.

• Lauren Lieberman from Barclays sets a price target of $36 for NASDAQ:KDP, indicating a potential upside of 5.51%.
• Q4 2024 earnings per share (EPS) forecasted at $0.57, with revenues expected to hit $4.03 billion, marking a 4.2% year-over-year increase.
• Despite a positive revenue and EPS growth outlook, consensus EPS estimate has been revised downward by 1.8% over the past 30 days.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a leading beverage company known for its diverse portfolio of soft drinks, coffee, and other beverages. The company competes with major players like Coca-Cola and PepsiCo. On February 24, 2025, Lauren Lieberman from Barclays set a price target of $36 for KDP, suggesting a potential price increase of 5.51% from its current trading price of $34.12.

KDP is expected to report quarterly earnings of $0.57 per share for the quarter ending December 2024, a 3.6% increase from the previous year. Analysts forecast revenues of $4.03 billion, marking a 4.2% year-over-year growth. Despite this positive outlook, the consensus earnings per share (EPS) estimate has been revised downward by 1.8% over the past 30 days, reflecting a reassessment by analysts.

The company is set to release its fourth-quarter 2024 earnings on February 25, before the market opens. Analysts expect a positive performance, with projected increases in both revenues and earnings per share. The Zacks Consensus Estimate for fourth-quarter revenues is $4.03 billion, a 4.2% rise from the same quarter last year. The consensus estimate for quarterly earnings has slightly decreased by a penny to 57 cents per share, still representing a 3.6% increase from the previous year.

KDP has a history of exceeding expectations, with an average earnings surprise of 3.4% over the past four quarters. The anticipated growth in earnings is likely driven by innovation, portfolio expansion, and growth in Refreshment Beverages. The stock is currently priced at $34.12, with a slight increase of 0.08, or 0.24%, today. It has fluctuated between a low of $33.86 and a high of $34.43 during the trading day.

• The consensus price target for KDP has decreased from $38.33 to $35.5, indicating a potential reassessment of the company's future growth prospects.
• RBC Capital remains optimistic about KDP, setting a higher price target of $43, suggesting confidence in the company's strategic initiatives and market position.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a significant contender in the beverage industry, offering a diverse portfolio of products across segments like Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. With well-known brands such as Dr Pepper, Canada Dry, and Snapple, KDP competes with other consumer defensive companies like Kimberly-Clark.

The consensus price target for KDP's stock has seen a decline over the past year, dropping from $38.33 to $35.5. This shift may reflect changing market conditions or company performance. Despite this, RBC Capital has set a higher price target of $43, suggesting optimism about KDP's future, as highlighted by RBC Capital.

KDP's upcoming fourth-quarter earnings are expected to benefit from innovation and growth in its Refreshment Beverages segment. The company's strategic initiatives in expanding its product offerings are anticipated to positively impact its financial performance. Investors are watching closely to see if KDP will exceed expectations in its earnings report.

Piper Sandler analyst Michael Lavery has initiated coverage on KDP with a Neutral rating and a target price of $35. While KDP faces challenges in its coffee segment, there is potential for growth in the energy drink market. This could influence future stock performance and investor sentiment.

• Lauren Lieberman from Barclays sets a price target of $36 for NASDAQ:KDP, indicating a potential upside of 5.51%.
• Q4 2024 earnings per share (EPS) forecasted at $0.57, with revenues expected to hit $4.03 billion, marking a 4.2% year-over-year increase.
• Despite a positive revenue and EPS growth outlook, consensus EPS estimate has been revised downward by 1.8% over the past 30 days.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a leading beverage company known for its diverse portfolio of soft drinks, coffee, and other beverages. The company competes with major players like Coca-Cola and PepsiCo. On February 24, 2025, Lauren Lieberman from Barclays set a price target of $36 for KDP, suggesting a potential price increase of 5.51% from its current trading price of $34.12.

KDP is expected to report quarterly earnings of $0.57 per share for the quarter ending December 2024, a 3.6% increase from the previous year. Analysts forecast revenues of $4.03 billion, marking a 4.2% year-over-year growth. Despite this positive outlook, the consensus earnings per share (EPS) estimate has been revised downward by 1.8% over the past 30 days, reflecting a reassessment by analysts.

The company is set to release its fourth-quarter 2024 earnings on February 25, before the market opens. Analysts expect a positive performance, with projected increases in both revenues and earnings per share. The Zacks Consensus Estimate for fourth-quarter revenues is $4.03 billion, a 4.2% rise from the same quarter last year. The consensus estimate for quarterly earnings has slightly decreased by a penny to 57 cents per share, still representing a 3.6% increase from the previous year.

KDP has a history of exceeding expectations, with an average earnings surprise of 3.4% over the past four quarters. The anticipated growth in earnings is likely driven by innovation, portfolio expansion, and growth in Refreshment Beverages. The stock is currently priced at $34.12, with a slight increase of 0.08, or 0.24%, today. It has fluctuated between a low of $33.86 and a high of $34.43 during the trading day.