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Keurig (KDP) Stock Gains as Q1 Earnings & Sales Top Estimates
Keurig (KDP) Stock Gains as Q1 Earnings & Sales Top Estimates
About this update from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-
Keurig Dr Pepper Inc. KDP has reported first-quarter 2024 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both earnings and revenues improved year over year. Results have gained from continued brand strength and significant price realization.Adjusted earnings of 38 cents per share grew 11.8% year over year and beat the Zacks Consensus Estimate of 34 cents. Earnings gains resulted from improved operating income and lower share count, partly offset by a higher tax rate and interest expenses.Net sales of $3,468 million surpassed the Zacks Consensus Estimate of $3,422 million and increased 3.4% from the year-ago quarter. On a constant-currency basis, net sales improved 2.8% year over year in the first quarter. The increase was aided by a 3.1% rise in net price realization, offset by a 0.3% decline in the volume/mix. Continued strength in the company's brand portfolio and elasticity across most categories aided revenues.Keurig Dr Pepper, Inc Price, Consensus and EPS SurpriseKeurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc QuoteAdjusted gross profit rose 10.4% year over year to $1.95 billion, with a year-over-year gross margin expansion of 350 basis points (bps) to 56.2%.Adjusted operating income rose 18% year over year to $825 million in the quarter. Meanwhile, the adjusted operating margin expanded 300 bps year over year to 23.8%. The increase in the adjusted operating margin resulted from improved net price realization and net productivity, negated by the marginal volume-mix decline and elevated SG&A expenses, including higher marketing investments.Shares of KDP rallied 5.5% following the strong first-quarter 2024 results. Shares of this currently Zacks Rank #3 (Hold) company have gained 1.1% in the past three months compared with the industry’s 3.6% rise. Segmental DetailsSales in the U.S. Refreshment Beverages segment totaled $2.1 billion, up 4.3% year over year, reflecting 5.6% higher net price realization, partly negated by a 1.3% decline in the volume/mix. The results have also been aided by higher pricing, persistent elasticities across most categories and contribution from KDP's recently commenced distribution partnership with Nutrabolt for C4 Energy.Sales in the U.S. Coffee segment declined 2.1% year over year to $911 million, reflecting a net price decline of 1.8% and a marginally low...