Shares of Keurig Dr Pepper (KDP) are up 6% after the beverage company raised its full-year sales guidance and reported solid financial results for the year’s third quarter.
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The Texas-based company known for soft drinks such as 7UP and Canada Dry announced Q3 earnings per share (EPS) of $0.54, which was in line with analysts’ consensus expectations. Revenue in the quarter totaled $4.31 billion, which surpassed the $4.15 billion forecast on Wall Street.
Keurig Dr Pepper also raised its revenue growth forecast for all of this year, saying it now expects sales in the “high-single-digit range,” up from mid-single-digit growth previously. Keurig Dr Pepper maintained its earnings growth projection that calls for a high-single-digit expansion.
Strong Sales
The company said it experienced growth across multiple business lines during Q3. International sales rose 10.5% to $580 million while refreshment beverage sales gained 14.4% during the July through September period.
Keurig Dr Pepper is also known for its Keurig coffee machines and pods. Sales within its U.S. coffee segment grew 1.5% to $991 million during Q3, largely driven by higher prices that offset a decline in volume. KDP stock is having its best day since March 2020 when its sales got a boost at the start of the COVID-19 pandemic.
Is KDP Stock a Buy?
The stock of Keurig Dr Pepper has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on nine Buy, five Hold, and one Sell recommendations issued in the last three months. The average KDP price target of $33.33 implies 14.97% upside from current levels. These ratings could change after the company’s financial results.
