Keurig Dr Pepper Inc. KDP is set to announce its fourth-quarter 2025 results on February 24, before the market opens. Anticipations suggest that the company will report growth in both earnings and revenues. The Zacks Consensus Estimate for quarterly revenues stands at $4.36 billion, reflecting a 7.2% increase compared to the same period last year.
The consensus forecast for KDP’s fourth-quarter earnings per share has remained steady over the past month at 59 cents. This estimate indicates a year-over-year increase of 1.7%.
In the previous quarter, the company achieved a break-even earnings surprise. Over the last four quarters, KDP has averaged an earnings surprise of 3.1%.
Key Factors to Note Ahead of KDP’s Q4 Results
Strong branding and effective pricing strategies have significantly contributed to the company’s performance. Ongoing expansion efforts and product innovations also serve as constructive factors. The Refreshment Beverages segment has shown robust momentum, enhancing overall results. Key drivers for this segment include increased pricing realization and favorable volume/mix, with market share gains noted across categories such as carbonated soft drinks, energy drinks, and sports hydration.
Improvements in premium and cold coffee innovations, along with strong brand performance and expanded partnerships with companies like Electrolit, GHOST, and Bloom Pop, are expected to positively impact results. KDP’s strategic transformation, combined with a strong brand portfolio, has been beneficial.
These factors, along with KDP’s consumer-focused innovation model and detailed scorecards tracking brand awareness, are anticipated to drive continued market share gains in the upcoming quarter. The Zacks Consensus Estimate for the Refreshment Beverages unit is projected at $2.7 billion, a 12.5% year-over-year increase.
Despite these positive indicators, Keurig Dr Pepper faces challenges including tariff and inflationary pressures, as well as escalated selling, general, and administrative (SG&A) costs attributed to increased marketing investments. In the recent earnings call, management noted the effects of green coffee inflation and tariffs expected to impact the fourth quarter. Additionally, the Coffee segment has been underperforming, with lower volumes and unfavorable pricing outcomes affecting its results.
Valuation Picture
From a valuation standpoint, Keurig Dr Pepper’s stock is trading at a discount compared to historical and industry standards. With a forward 12-month price-to-earnings ratio of 13.25x, it sits below the five-year high of 23.33x and below the average of 20.08x for the Beverages – Soft Drinks industry, making it an attractive option for investors interested in the sector.
Recently, KDP’s shares have increased by 8.4% over the last three months, while the industry overall has grown by 12.5%.
What the Zacks Model Unveils
The Zacks model currently does not predict an earnings beat for Keurig Dr Pepper this reporting cycle. A combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) usually increases the chances of an earnings surprise, which is not the case here. KDP presently has an Earnings ESP of 0.00% and a Zacks Rank of 2.
Keurig Dr Pepper, Inc Price and EPS Surprise
Keurig Dr Pepper, Inc price-eps-surprise | Keurig Dr Pepper, Inc Quote
Stocks With a Favorable Combination
Here are some stocks that, according to our model, have the potential to exceed earnings expectations in this reporting cycle:
Monster Beverage Corporation MNST has an Earnings ESP of +17.16% and a Zacks Rank of 2. The consensus estimate for Monster Beverage’s revenue this quarter is $2.1 billion, indicating almost 13% growth from the prior-year quarter. The Zacks Consensus Estimate for Monster Beverage’s upcoming EPS is 49 cents, suggesting a year-over-year increase of 29%. MNST has averaged a trailing four-quarter earnings surprise of 5.5%.
Fomento Economico Mexicano S.A.B. de C.V. FMX, or FEMSA, currently holds an Earnings ESP of +3.92% and a Zacks Rank of 3. The expected revenue for the upcoming quarter is estimated at $12.4 billion, marking a 24.6% jump from the same quarter last year.
The Zacks Consensus Estimate for FEMSA’s quarterly earnings per share is $1.53, reflecting an impressive growth of 232.6% from the previous year. FMX has faced negative earnings surprises over the last three quarters.
Celsius Holdings, Inc. CELH carries an Earnings ESP of +6.46% and a Zacks Rank of 3. The consensus projection for Celsius Holdings’ quarterly revenues is $638.2 million, indicating a substantial increase of 92.1% from the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ upcoming EPS is 19 cents, predicting a 35.7% rise year-over-year. CELH has averaged a trailing four-quarter earnings surprise of about 42.9%.
Research Chief Names “Single Best Pick to Double”
Among thousands of stocks, five Zacks experts have selected their top contenders expected to surge by 100% or more in the upcoming months. From this shortlist, the Director of Research, Sheraz Mian, has singled out one stock with exceptional potential for explosive growth.
This particular company appeals to millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter. A recent dip in its stock value presents an opportune moment for investment. While not all selected stocks are guaranteed winners, this one could ultimately outperform earlier Zacks’ selections like Nano-X Imaging, which experienced a 129.6% increase over just over nine months.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Monster Beverage Corporation (MNST): Free Stock Analysis Report
Celsius Holdings Inc. (CELH): Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report
This article originally published by Zacks Investment Research (zacks.com).
Zacks Investment Research
Key Takeaways
- KDP will report its Q4 2025 financial results on February 24.
- Revenue is expected to reach $4.36 billion, reflecting a 7.2% year-over-year increase.
- The Refreshment Beverages segment is anticipated to show significant growth.
- KDP is navigating challenges such as inflation and rising operational costs.
- Current stock valuations suggest a favorable opportunity for investors.
- The company has maintained its earnings estimate at 59 cents per share.
FAQ
What is the expected revenue for KDP’s Q4 2025?
The expected revenue is $4.36 billion, a 7.2% increase from last year.
What challenges is KDP currently facing?
KDP is dealing with inflationary pressures, tariff impacts, and increasing SG&A costs.
When will KDP announce its fourth-quarter results?
The announcement is scheduled for February 24, before the market opens.
