By Dean Seal
Keurig Dr Pepper is set to report fourth-quarter earnings before the bell on Thursday. Here’s what you need to know.
PROFIT: The beverage company is expected to post a profit of $734 million, or 52 cents a share, compared with $453 million, or 32 cents a share, in the same quarter a year ago, according to the consensus estimate of four analysts polled by FactSet.
EARNINGS: Stripping out one-time items, adjusted earnings are forecast to be 54 cents a share, according to forecasts of 17 analysts surveyed by FactSet.
SALES: Revenue is expected to come in at $3.92 billion, up from $3.8 billion in the year-ago quarter, according to 14 analysts polled by FactSet.
WHAT TO WATCH
–Challenges in the company’s coffee business have been on display for more than a year as consumers have returned to the office and made coffee at home less frequently. UBS analysts said in a note Tuesday that they expect organic sales in the coffee unit to decline more than 6% on lower volumes based on comments the company has made about shipment trends.
–A broad slowdown across many beverage categories in North America could weigh on the company’s 2024 guidance, UBS analysts said. Investors will be looking to see if the company is still aiming for mid-single-digit sales growth or taking a more conservative approach.
–Keurig Dr Pepper is expected to realize notable margin expansion in its coffee business during 4Q that should continue to materialize in the first half of 2024, Wedbush analysts said in a research note, adding that they believe the improvement should drive guidance for high-single-digit earnings growth in 2024.
Write to Dean Seal at [email protected]
Read the full article here
