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What's in the Cards for Keurig Dr Pepper's (KDP) Q1 Earnings?
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Keurig Dr Pepper Inc. (KDP - Free Report) is scheduled to release first-quarter 2020 results on Apr 27. The company’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. Further, it delivered a positive earnings surprise of 3.9%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 27 cents per share, which suggests 8% growth from the year-ago quarter’s reported figure. The consensus mark has been stable in the past 30 days. The consensus mark for revenues is pegged at $2,578 million, which indicates a 2.9% rise from the year-ago quarter’s reported figure.
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
Keurig Dr Pepper has been benefiting from efforts to drive the top line. To this end, the company has been undertaking innovation and renovations in the cold beverages business. Further, the company has been focused on marketing and innovation in its core brands. Apart from this, partnerships and acquisitions have been major growth drivers.
The company’s growth-oriented investments for 2020 bode well. However, in its last earnings call, the company noted that the planned strategic investments for 2020 will be skewed toward the first half compared with the second half, resulting in higher investment costs. Further, it expects lower productivity and synergies in the first half. Moreover, Keurig Dr Pepper anticipates inflation to be the highest in the first half, particularly in the first quarter, with moderation throughout the rest of the year. The company is also likely to have witnessed higher tariffs and elevated marketing investments for the coffee systems business in the first quarter. Nonetheless, robust cash flow generation and focus on rapid deleveraging are key positives.
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 to buy or sell before they’re reported with our Earnings ESP Filter.
Keurig Dr Pepper carries a Zacks Rank #3 but has an Earnings ESP of -6.91%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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What's in the Cards for Keurig Dr Pepper's (KDP) Q1 Earnings?
Keurig Dr Pepper Inc. (KDP - Free Report) is scheduled to release first-quarter 2020 results on Apr 27. The company’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. Further, it delivered a positive earnings surprise of 3.9%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 27 cents per share, which suggests 8% growth from the year-ago quarter’s reported figure. The consensus mark has been stable in the past 30 days. The consensus mark for revenues is pegged at $2,578 million, which indicates a 2.9% rise from the year-ago quarter’s reported figure.
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote
Key Factors
Keurig Dr Pepper has been benefiting from efforts to drive the top line. To this end, the company has been undertaking innovation and renovations in the cold beverages business. Further, the company has been focused on marketing and innovation in its core brands. Apart from this, partnerships and acquisitions have been major growth drivers.
The company’s growth-oriented investments for 2020 bode well. However, in its last earnings call, the company noted that the planned strategic investments for 2020 will be skewed toward the first half compared with the second half, resulting in higher investment costs. Further, it expects lower productivity and synergies in the first half. Moreover, Keurig Dr Pepper anticipates inflation to be the highest in the first half, particularly in the first quarter, with moderation throughout the rest of the year. The company is also likely to have witnessed higher tariffs and elevated marketing investments for the coffee systems business in the first quarter. Nonetheless, robust cash flow generation and focus on rapid deleveraging are key positives.
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 to buy or sell before they’re reported with our Earnings ESP Filter.
Keurig Dr Pepper carries a Zacks Rank #3 but has an Earnings ESP of -6.91%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Clorox (CLX - Free Report) currently has an Earnings ESP of +3.24% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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