Keurig Dr Pepper Inc. (KDP Quick QuoteKDP - Free Report) is scheduled to release first-quarter 2025 results on April 24, before market open. The company is expected to register top-line growth when it reports the quarterly results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.56 billion, indicating a 2.8% rise from the year-ago period’s number.

The consensus estimate for KDP’s first-quarter earnings has remained unchanged in the past 30 days at 38 cents per share. The consensus mark for earnings per share remains flat on a year-over-year basis.

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In the last reported quarter, the company delivered an earnings surprise of 1.8%. KDP has registered an earnings surprise of 3.4%, on average, in the trailing four quarters.

Key Factors to Note Ahead of KDP’s Q1 Results

Continued strength in brands and pricing actions have been bolstering the company’s perdormance. Its expansion initiatives and efforts to bring innovation to its products are acting as tailwinds. Sturdy momentum in the Refreshment Beverages segment has been contributing to its overall results. Contribution from the GHOST acquisition is likely to aid results.

The Refreshment Beverages  segment has been benefiting from innovations, effective in-market execution, growth in CSDs and expansion in energy and sports hydration. The International unit is also performing well. KDP is focused on reinforcing Electrolit’s distribution and improving away-from-home coffee, which are likely to drive results. 

Such traits, along with KDP’s consumer-focused innovation model, supported by comprehensive scorecards tracking awareness, household penetration and loyalty, are expected to have driven continued market share gains in the to-be-reported quarter. The Zacks Consensus Estimate for Refreshment Beverages unit sales is pegged at $2.2 billion, up 4.8% year over year.

Although the aforesaid positives are likely to aid the quarterly results, Keurig Dr Pepper has been witnessing inflationary pressures and elevated selling, general and administrative (SG&A)  costs, including increased marketing investments. 

The company has also been grappling with a sluggish  Coffee segment for a while now. Lower volumes, unfavorable net price realization and declines in Brewer shipments have been weighing on the segment’s performance. The Zacks Consensus Estimate for the Coffee unit sales is pegged at $885 million, down 2.9% year over year.

Valuation Picture 

From a valuation perspective, Keurig Dr Pepper stock is trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.09x, which is below the five-year high of 23.33x and the Beverages - Soft Drinks industry’s average of 19.04x, the stock offers compelling value for investors seeking exposure to the sector.

The recent market movements show that KDP’s shares have risen 12.7% in the past three months compared with the industry's growth of 11.9%.

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 currently has an Earnings ESP of -0.90% and a Zacks Rank of 3.

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.

Freshpet (FRPT Quick QuoteFRPT - Free Report) currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports first-quarter 2025 numbers. The consensus mark for revenues is pegged at $262.3 million, which indicates a drop of 17.2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s quarterly earnings per share of 13 cents implies a 38.1% decrease from the year-ago quarter. The consensus mark has fallen 23.5% in the past seven days. FRPT has a trailing four-quarter earnings surprise of 78.8%, on average.

Church & Dwight Co. (CHD Quick QuoteCHD - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 3 at present. CHD is likely to register top-line growth when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.51 billion, which implies growth of 0.6% 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 89 cents per share, implying a decline of 7.3% from the year-ago quarter’s number. CHD delivered an earnings surprise of 9.6%, on average, in the trailing four quarters.

Hershey (HSY Quick QuoteHSY - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank of 3. HSY is anticipated to register top and bottom-line decline when it reports first-quarter 2025 results. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.82 billion, indicating drop of 13.3% from the figure reported in the year-ago quarter. 

The consensus estimate for Hershey’s earnings has increased a penny in the past seven days to $1.94 per share. The consensus estimate implies a plunge of 36.8% from the year-ago quarter’s figure. HSY has delivered an earnings beat of 1.7%, on average, in the trailing four quarters.