Beverage company Keurig Dr Pepper (NASDAQ:KDP) will be announcing earnings results this Monday before the bell. Here’s what to look for.
Keurig Dr Pepper beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $4.16 billion, up 6.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
Is Keurig Dr Pepper a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Keurig Dr Pepper’s revenue to grow 6.7% year on year to $4.15 billion, improving from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Keurig Dr Pepper has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Keurig Dr Pepper’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Tilray delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 2.7%, and Constellation Brands reported a revenue decline of 15%, topping estimates by 0.5%. Tilray’s stock price was unchanged after the resultswhile Constellation Brands was up 1%.
Read our full analysis of Tilray’s results here and Constellation Brands’s results here.
Investors in the beverages, alcohol, and tobacco segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Keurig Dr Pepper is up 7% during the same time and is heading into earnings with an average analyst price target of $33.88 (compared to the current share price of $27.28).
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