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Factors Likely to Influence Keurig (KDP) in Q1 Earnings

·5 min read

Keurig Dr Pepper Inc. KDP is scheduled to release first-quarter 2022 results on Apr 28, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 33 cents, suggesting no change from the year-ago quarter’s reported figure. The consensus mark has also been unchanged in the past 30 days. The consensus mark for quarterly revenues is pegged at $3.02 billion, indicating 3.9% growth from the year-ago period’s reported number.

In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. We note that its earnings outperformed the Zacks Consensus Estimate by 2.3%, on average, in the trailing four quarters.

Key Factors to Note

Keurig has been gaining from solid portfolio demand and continued market share gains, stemming from robust in-market performances across categories and brands.

Sales gains in the first quarter are anticipated to have been driven by growth across all business segments, particularly the Packaged Beverages, Beverage Concentrates and Latin America Beverages segments. Also, improvement in the away-from-home channel, owing to increased consumer mobility, bodes well.

The company is likely to have retained its strong performance in the Packaged Beverages segment in the first quarter, attributable to growth in CSDs — particularly Dr Pepper, Canada Dry, Sunkist, A&W, 7UP, CORE Hydration, Vita Coco, Clamato, Yoo-Hoo, and Bai and Squirt, as well as growth in Polar, Snapple and Mott's. Favorable volume/mix and higher net price realization have been aiding the segment's sales.

KDP's carbonated soft drinks have been gaining traction, driven by core brand growth and successful innovation, particularly its new-zero sugar variety. Sunkist has become the leading fruit-flavored CSD brand, with double-digit consumption growth. The Dr Pepper brand has also been performing well on robust consumption growth. The trends are likely to have aided KDP's performance.

However, the company has been witnessing headwinds related to input cost inflation, labor shortages, rising transportation costs, and supply-chain disruptions, which are likely to have persisted in the first quarter. These, along with product unavailability due to supply-chain headwinds, are expected to have led to higher inventory.

On its last reported earnings call, management expected supply-chain challenges to be more pronounced in the first quarter of 2022. Inflation is likely to have hurt margins in the quarter under review.

Keurig Dr Pepper, Inc Price and EPS Surprise

Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc Price and EPS Surprise

Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Keurig 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 currently has a Zacks Rank #3 and Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.

Hershey HSY currently has an Earnings ESP of +1.84% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 8.2% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $2.10 per share, suggesting a 9.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 4.3%, on average, in the trailing four quarters.

Church & Dwight CHD currently has an Earnings ESP of +2.69% and a Zacks Rank #3. CHD is likely to register top-line growth when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.29 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.

However, the Zacks Consensus Estimate for Church & Dwight quarterly earnings has moved down by a penny in the past 30 days to 76 cents per share, suggesting a decrease of 8.4% from the year-ago quarter’s reported number. CHD has delivered an earnings beat of 8.84%, on average, in the trailing four quarters.

Corteva CTVA, currently has an Earnings ESP of +0.70% and a Zacks Rank #3. CTVA is anticipated to register top and bottom-line growth when it reports the first-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.53 billion, indicating an improvement of 8.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to 81 cents per share. However, the consensus estimate for CTVA suggests growth of 2.5% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Hershey Company The (HSY) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report

Corteva, Inc. (CTVA) : Free Stock Analysis Report

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