Keurig Dr Pepper (NASDAQ:KDP) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Keurig Dr Pepper (NASDAQ:KDP) posted its earnings results on Tuesday. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.62 by $0.04, Zacks reports. Keurig Dr Pepper had a return on equity of 11.27% and a net margin of 7.12%. The firm had revenue of $7.34 billion for the quarter, compared to analyst estimates of $7.33 billion. During the same quarter in the prior year, the company posted $0.54 earnings per share. Keurig Dr Pepper’s revenue for the quarter was up 70.6% compared to the same quarter last year.

Here are the key takeaways from Keurig Dr Pepper’s conference call:

• U.S. Refreshment Beverages continued strong momentum, with net sales up 10.9% and the eighth consecutive quarter of double-digit growth. Dr Pepper, Ghost, Electrolit, Canada Dry and other brands gained traction, while the energy portfolio surpassed 10% market share.
• U.S. Coffee faced softer-than-expected single-serve demand as value-conscious consumers shifted toward lower-cost formats and private label. KDP lowered its legacy EPS growth outlook to 3%-5% from 4%-6%, while increasing trade promotions and marketing to support the category.
• JDE Peet’s delivered approximately $2.6 billion in sales and $480 million in operating income, with improved market-share trends, pricing discipline, productivity savings and synergies. Its expected contribution to total-company EPS growth was raised to 7%-8% from 6%-7%.
• KDP generated $1 billion of third-quarter free cash flow and plans to use approximately $925 million of proceeds from the Chobani stake and facility transaction for debt repayment. Management also remains on track for the planned early-2027 separation into Beverage Co. and Global Coffee Co., subject to market conditions.

Keurig Dr Pepper Stock Up 5.9%

Shares of NASDAQ KDP opened at $36.79 on Thursday. The business has a 50-day moving average price of $32.68 and a 200 day moving average price of $30.11. The stock has a market cap of $50.06 billion, a PE ratio of 33.75, a price-to-earnings-growth ratio of 1.65 and a beta of 0.35. The company has a quick ratio of 0.28, a current ratio of 0.52 and a debt-to-equity ratio of 0.73. Keurig Dr Pepper has a 52-week low of $24.88 and a 52-week high of $37.31.

Keurig Dr Pepper Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Monday, September 28th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, September 28th. Keurig Dr Pepper’s payout ratio is presently 92.93%.

Insider Activity

In related news, insider Mary Beth Denooyer sold 12,000 shares of Keurig Dr Pepper stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $32.55, for a total value of $390,600.00. Following the transaction, the insider directly owned 84,171 shares in the company, valued at $2,739,766.05. This trade represents a 12.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Aaron E. Alt bought 7,862 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were acquired at an average price of $31.83 per share, for a total transaction of $250,247.46. Following the transaction, the director directly owned 7,862 shares in the company, valued at $250,247.46. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.34% of the company’s stock.

Keurig Dr Pepper News Roundup

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: Quarterly earnings topped estimates. KDP reported Q3 EPS of $0.66 versus the $0.62 consensus, while revenue of $7.34 billion was slightly above expectations. Revenue growth was boosted substantially by the JDE Peet’s acquisition. KDP beats Q3 earnings estimates
• Positive Sentiment: Beverage and energy-drink growth is a bright spot. Recent acquisitions helped KDP’s energy-drink market share exceed 10%, while beverage growth helped offset weaker coffee performance. Long-term investor takeaways
• Positive Sentiment: Analyst targets moved higher. UBS raised its target to $42 and kept a Buy rating; JPMorgan lifted its target to $41 with an Overweight rating, and Morgan Stanley raised its target to $40 and maintained Overweight. UBS rating information
• Neutral Sentiment: KDP reaffirmed its full-year outlook and expects 2026 net sales of $25.9 billion to $26.4 billion. The company is also planning to separate its coffee and beverage businesses in early 2027, a move that could clarify their valuations but adds execution and transition uncertainty. Sales outlook and planned separation
• Negative Sentiment: Coffee remains a drag. US coffee demand is weak as consumers trade down, and KDP warned of slower fourth-quarter coffee profits. TD Cowen raised its target to $35 but retained a Hold rating, signaling caution about valuation and near-term prospects. Coffee profit outlook

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Keurig Dr Pepper in a research report on Friday, August 7th. Morgan Stanley increased their price objective on Keurig Dr Pepper from $38.00 to $40.00 and gave the company an “overweight” rating in a report on Wednesday. JPMorgan Chase & Co. raised their target price on Keurig Dr Pepper from $39.00 to $41.00 and gave the stock an “overweight” rating in a research report on Wednesday. Piper Sandler restated an “overweight” rating on shares of Keurig Dr Pepper in a research note on Wednesday, October 14th. Finally, Sanford C. Bernstein set a $39.00 target price on Keurig Dr Pepper in a research note on Wednesday, July 8th. Ten equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Keurig Dr Pepper presently has an average rating of “Moderate Buy” and an average price target of $37.12.

About Keurig Dr Pepper

Keurig Dr Pepper Inc (NASDAQ: KDP) is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.