Factors Likely to Influence Keurig's (KDP) Q4 Earnings
Keurig Dr Pepper Inc. KDP is scheduled to release fourth-quarter 2022 results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 51 cents, suggesting a 13.3% increase 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 $3.8 billion, indicating 11.9% growth from the year-ago period’s reported number.
For 2022, the Zacks Consensus Estimate is pegged at $14.1 billion, suggesting 10.8% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for 2022 earnings indicates a 5.6% year-over-year increase to $1.69.
In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Notably, the company’s earnings met the Zacks Consensus Estimate, on average, in the trailing four quarters.
Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote
Key Factors to Note
Keurig has been gaining from the solid performance in its cold beverages, driven by strong in-market execution and increased marketing investment. Also, a recovery in the coffee business bodes well.
On its last reported quarter’s earnings call, management expected the coffee business to deliver strong sales and earnings growth in the fourth quarter.
Within carbonated soft drinks, the company’s zero-sugar products have been performing well. And in seltzers, its partnership with Polar has been driving growth. Driven by such upsides, management, in its last earnings report, projected net sales (cc) growth in the low-double-digit range and adjusted earnings per share growth in the mid-single digits for 2022.
The company is likely to have retained its strong performance in the Packaged Beverages segment in the fourth quarter, attributable to growth in CSDs, CORE Hydration, Snapple, Polar seltzers, Evian, Mott's and Hawaiian Punch. KDP has also been gaining from strong in-market performance, with strength in CSDs, premium unflavored water, seltzers, teas, apple juice and fruit drinks.
However, the company has been witnessing input cost inflation, rising transportation costs and supply-chain disruptions. These, along with the adverse impacts of higher marketing investment, acted as deterrents.
On the last reported quarter’s earnings call, management anticipated inflation to remain the greatest challenge.
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 an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
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 this season:
Inter Parfums IPAR has an Earnings ESP of +13.33% and currently carries a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. The consensus mark for IPAR’s quarterly revenues is pegged at $311.5 million, which suggests 47.8% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Inter Parfums’ quarterly earnings has moved up by a penny in the past 30 days to 30 cents per share. The consensus estimate for IPAR’s fourth-quarter earnings suggests growth of 850% from the year-ago quarter’s reported figure.
Molson Coors TAP currently has an Earnings ESP of +0.27% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for TAP’s quarterly earnings has moved up by a penny in the past 30 days to $1.06 per share. The consensus estimate indicates growth of 30.9% from the year-ago quarter's loss per share of 9 cents.
Molson Coors’ top line is expected to have risen year over year. The Zacks Consensus Estimate for TAP’s quarterly revenues is pegged at $2.67 billion, suggesting growth of 1.9% from the figure reported in the prior-year quarter. TAP has delivered an earnings surprise of 12.3%, on average, in the trailing four quarters.
The J. M. Smucker Co. SJM has an Earnings ESP of +1.94% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter fiscal 2023 earnings is pegged at $2.14, calling for an 8.2% decline from the year-ago period’s reported figure. SJM has a trailing four-quarter earnings surprise of 18.5%, on average.
The consensus mark for The J. M. Smucker’s top line is pegged at $2.2 billion, suggesting growth of 7.8% from the prior-year quarter’s reported figure.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report
