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Keurig Dr Pepper (KDP) to Report Q2 Earnings: What's in Store?
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Keurig Dr Pepper Inc. (KDP - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, before market open. The company is expected to register top and bottom-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.90 billion, indicating a 3% rise from the year-ago period’s reported number.
The consensus estimate for KDP’s earnings has remained unchanged in the past 30 days at 45 cents per share. The consensus mark for earnings indicates a 7.1% jump on a year-over-year basis.
In the last reported quarter, the company delivered an earnings surprise of 11.8%. KDP has registered an earnings surprise of 5.2%, on average, in the trailing four quarters.
Key Factors to Note
Keurig Dr Pepper’s quarterly performance is expected to have been supported by continued brand strength and effective pricing strategies. The company’s expansion initiatives and product innovation are likely to have contributed to improved sales trends. Momentum in the Refreshment Beverages, backed by innovations, effective in-market execution, growth in CSDs, and expansion in energy and sports hydration, is expected to be reflected in KDP’s second-quarter results. The International unit has also been performing well. The persistence of these trends is expected to have driven the company’s performance.
However, Keurig Dr Pepper has been facing challenges from commodity inflation, which, combined with higher marketing investment, have been raising costs and impacting profitability. Also, weaker trends in certain steel beverage categories are hurting results.
The company has also been struggling with sluggishness in the Coffee segment for a while now. Lower volumes/mix and declines in K-pod shipments have been weighing on the segment’s performance. Keurig Dr Pepper has also been witnessing higher interest expenses, which are expected to have contributed to reduced profitability in the second quarter.
Valuation Picture
From a valuation perspective, Keurig Dr Pepper offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.62x, which is below the five-year high of 23.7x and the Beverages - Soft Drinks industry’s average of 20.75x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that KDP’s shares have risen 6.6% in the past six months compared with the industry's 5.9% growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Keurig Dr Pepper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is likely to register a decline in the top line when it reports second-quarter numbers. The Zacks Consensus Estimate for revenues is pegged at $5.08 billion, which indicates a drop of 1.1% from the figure reported in the year-ago quarter.
The consensus estimate for Kimberly-Clark’s quarterly earnings per share of $1.68 indicates a 1.8% increase from the year-ago quarter. The consensus mark has been stable in the past 30 days. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.
Colgate (CL - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 2. CL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5 billion, indicating growth of 4% from the figure reported in the year-ago quarter.
The consensus estimate for Colgate’s earnings has been stable in the past 30 days at 87 cents per share. The consensus mark indicates 13% growth from the year-ago quarter’s reported figure. CL has delivered an earnings beat of 4.4%, on average, in the trailing four quarters.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 2, at present. CHD is likely to register top-line growth when it releases second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.51 billion, which indicates growth of 3.8% from the figure reported in the year-ago quarter.
The consensus estimate for Church & Dwight’s quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, indicating a decline of 8.7% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.6%, on average, in the trailing four quarters.
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Keurig Dr Pepper (KDP) to Report Q2 Earnings: What's in Store?
Keurig Dr Pepper Inc. (KDP - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, before market open. The company is expected to register top and bottom-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.90 billion, indicating a 3% rise from the year-ago period’s reported number.
The consensus estimate for KDP’s earnings has remained unchanged in the past 30 days at 45 cents per share. The consensus mark for earnings indicates a 7.1% jump on a year-over-year basis.
In the last reported quarter, the company delivered an earnings surprise of 11.8%. KDP has registered an earnings surprise of 5.2%, on average, in the trailing four quarters.
Key Factors to Note
Keurig Dr Pepper’s quarterly performance is expected to have been supported by continued brand strength and effective pricing strategies. The company’s expansion initiatives and product innovation are likely to have contributed to improved sales trends. Momentum in the Refreshment Beverages, backed by innovations, effective in-market execution, growth in CSDs, and expansion in energy and sports hydration, is expected to be reflected in KDP’s second-quarter results. The International unit has also been performing well. The persistence of these trends is expected to have driven the company’s performance.
However, Keurig Dr Pepper has been facing challenges from commodity inflation, which, combined with higher marketing investment, have been raising costs and impacting profitability. Also, weaker trends in certain steel beverage categories are hurting results.
The company has also been struggling with sluggishness in the Coffee segment for a while now. Lower volumes/mix and declines in K-pod shipments have been weighing on the segment’s performance. Keurig Dr Pepper has also been witnessing higher interest expenses, which are expected to have contributed to reduced profitability in the second quarter.
Valuation Picture
From a valuation perspective, Keurig Dr Pepper offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.62x, which is below the five-year high of 23.7x and the Beverages - Soft Drinks industry’s average of 20.75x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that KDP’s shares have risen 6.6% in the past six months compared with the industry's 5.9% growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Keurig Dr Pepper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote
Keurig Dr Pepper currently has an Earnings ESP of -1.46% and a Zacks Rank #4 (Sell).
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.52% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a decline in the top line when it reports second-quarter numbers. The Zacks Consensus Estimate for revenues is pegged at $5.08 billion, which indicates a drop of 1.1% from the figure reported in the year-ago quarter.
The consensus estimate for Kimberly-Clark’s quarterly earnings per share of $1.68 indicates a 1.8% increase from the year-ago quarter. The consensus mark has been stable in the past 30 days. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.
Colgate (CL - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 2. CL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5 billion, indicating growth of 4% from the figure reported in the year-ago quarter.
The consensus estimate for Colgate’s earnings has been stable in the past 30 days at 87 cents per share. The consensus mark indicates 13% growth from the year-ago quarter’s reported figure. CL has delivered an earnings beat of 4.4%, on average, in the trailing four quarters.
Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 2, at present. CHD is likely to register top-line growth when it releases second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.51 billion, which indicates growth of 3.8% from the figure reported in the year-ago quarter.
The consensus estimate for Church & Dwight’s quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, indicating a decline of 8.7% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.