Keurig Dr Pepper Stock Surges After Q4 Earnings Top Wall Street Expectations: Retail’s Elated

In constant currency terms, its 2024 net sales grew 4%, led by its U.S. refreshment beverages and international segments.

Shares of Keurig Dr Pepper (KDP) rose 2.40% on Tuesday following the beverage giant's better-than-expected fourth-quarter results, lifting retail sentiment.

Keurig Dr Pepper’s fourth-quarter earnings per share came in at $0.58, beating estimates of $0.57. Revenue stood at $4.07 billion, surpassing Wall Street’s expectations of $4.02 billion. The company’s adjusted diluted EPS grew by 8%, marking the second consecutive year of sequential acceleration, it noted.

For Q4, its net sales increased 6.2%, driven by volume/mix growth of 5.3% and favorable net price realization of 0.9%, the company said.

In constant currency terms, its 2024 net sales grew 4%, led by its U.S. refreshment beverages and international segments.

"In 2024, we delivered strong financial performance consistent with our long-term algorithm and advanced our strategy to lay the groundwork for KDP's next phase of growth,” said  Keurig Dr Pepper’s CEO Tim Cofer. “We gained market share through exciting innovation, marketing, and activation across our CSD and coffee brands, drove win-win outcomes with partner brands such as Electrolit and C4, and took bold action to extend our portfolio and route to market with the acquisition of GHOST and select territory expansions."

For 2025, KDP expects net sales growth in a mid-single-digit range and adjusted diluted EPS growth in a high-single-digit range on a constant currency basis, including the anticipated contribution from the acquisition of GHOST.

“Though the operating backdrop is demanding, we are confident that our strategic progress and business momentum will translate into yet another set of compelling, on-algorithm results in 2025," Cofer said.

Sentiment on Stocktwits improved to ‘extremely bullish’ from ‘bullish’ a day ago. Message volume moved up to the ‘extremely high’ territory from ‘high.’

One bullish commenter praised the company’s products, calling its soda the “best ever.”

Keurig Dr Pepper's soft drinks brands include Keurig, Dr Pepper, Canada Dry, A&W, and Snapple.

Keurig Dr Pepper' stock is up 8.8% year-to-date.

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