NEW YORK - Keurig Dr Pepper Inc. (NASDAQ: NASDAQ:KDP) shares rose 2.3% as the company reported second-quarter earnings that met analyst expectations and showcased a robust performance, particularly in its international segment.
The company's adjusted earnings per share (EPS) for the quarter were $0.45, aligning with the consensus estimate. Revenue for the quarter slightly exceeded expectations at $3.93 billion, compared to the analyst forecast of $3.92 billion.
The beverage giant saw its net sales increase by 3.5% to $3.9 billion compared to the same period last year, driven by a combination of volume/mix growth and higher net price realization. The international segment experienced a notable 15.5% increase in net sales, reaching $0.6 billion, reflecting broad-based strength across the portfolio.
The U.S. Refreshment Beverages segment also contributed positively with a 3.3% rise in net sales to $2.4 billion. However, the U.S. Coffee segment faced a slight downturn with net sales decreasing by 2.1% to $1.0 billion.
CEO Tim Cofer commented on the results, stating, "Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth."
He attributed the strong performance to the company's strategic initiatives, including consumer-centric innovation, portfolio expansion, and a focus on cost efficiency.
Investors reacted positively to the results, which were better than feared, sending the stock up over 2% in the trading session following the earnings release. The company's reaffirmation of its fiscal 2024 guidance for mid-single-digit range constant currency net sales growth and high-single-digit range adjusted diluted EPS growth further bolstered market confidence.
For the rest of 2024, Keurig Dr Pepper remains committed to its outlook, expecting to continue leveraging its strategic agenda for consistent growth.
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