Keurig Dr Pepper (NASDAQ:KDP) shares are on the rise today after the beverage giant delivered better-than-expected third-quarter numbers. Revenue increased by 5.2% year-over-year to $3.81 billion, outpacing expectations by $40 million. EPS of $0.48 also beat estimates by a narrow margin of $0.01.
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KDP is witnessing healthy sales momentum with promising trends in its U.S. Refreshment Beverages and International segments. The company is now expanding into sports hydration through a partnership with Grupo PiSA for Electrolit.
Market share gains and net price realization helped net sales in the U.S. Refreshment Beverage segment increase by 5.9% to $2.27 billion. Similarly, favorable volume/mix growth and net price realization drove net sales in its International segment higher by 20.8% to $523 million. Net sales in the U.S. Coffee segment, however, declined by 3.2% to $1.01 billion due to a decline in volume/mix.
Looking ahead to the Fiscal Year 2023, KDP expects net sales growth of 5% to 6% in constant currency terms. Adjusted EPS for the year is anticipated to rise by 6% to 7%.
Is KDP Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Keurig Dr Pepper. The average KDP price target of $35.64 implies a 19.5% potential upside. Today’s price uptick comes after a nearly 24% slide in KDP shares over the past year.
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