:max_bytes(150000):strip_icc()/GettyImages-2205169517-d056238fc20e4f19a2cc9da9ae07ff5c.jpg "Keurig Dr Pepper Stock Jumped Today. Here’s Why")
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Key Takeaways
- Strength in its U.S. soft drinks, coffee, and Ghost energy businesses boosted results at Keurig Dr Pepper.
- Keurig Dr Pepper raised its full-year constant currency sales growth guidance.
- Shares were up about 7% at midday on Monday.
Shares of Keurig Dr Pepper (KDP) gained when the soft-drink giant posted better-than-expected results and raised its outlook on strong domestic sales and the benefit from its acquisition of Ghost energy drinks.
The company behind its namesake coffee and soda products reported third-quarter adjusted earnings per share of $0.54, in line with what analysts surveyed by Visible Alpha were expecting. Revenue climbed 10.7% to $4.31 billion, beating estimates.
Why This News Matters
Keurig Dr Pepper beat third-quarter revenue expectations, fueled by strong U.S. beverage sales and the Ghost energy drink acquisition. The company is finding success with its efforts to drive domestic growth and strengthen its coffee and refreshment beverage segments.
CEO Tim Cofer said the performance was lifted by “robust growth in U.S. Refreshment Beverages and encouraging sequential progress in U.S. Coffee.” U.S. Refreshment Beverages sales increased 14.4% to $2.7 billion. U.S. coffee sales were up 1.5% to $991 million as the company boosted prices for K-Cups. The Ghost acquisition added 4.4 percentage points of volume/mix growth, the company said.
Keurig Dr Pepper now sees full-year sales growth in constant currency in the high-single-digit percent range, up from its previous forecast of a mid-single-digit percent increase.
Keurig Dr Pepper shares were up 7% in intraday trading on Monday, but remain down about 10% this year.
