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Beverage company Keurig Dr Pepper (NASDAQ:KDP) will be reporting results tomorrow morning. Here’s what to look for.
Keurig Dr Pepper met analysts’ revenue expectations last quarter, reporting revenues of $3.92 billion, up 3.5% year on year. It was a decent quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Keurig Dr Pepper a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Keurig Dr Pepper’s revenue to grow 3.1% year on year to $3.92 billion, slowing from the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 11 analysts). 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 consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Constellation Brands delivered year-on-year revenue growth of 2.9%, meeting analysts’ expectations, and Tilray Brands reported revenues up 13.1%, falling short of estimates by 9.4%. Constellation Brands traded down 3.5% following the results while Tilray Brands’s stock price was unchanged.
Read our full analysis of Constellation Brands’s results here and Tilray Brands’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Keurig Dr Pepper is down 2.6% during the same time and is heading into earnings with an average analyst price target of $38.43 (compared to the current share price of $36.86).
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