NASDAQ$KDP
Keurig Dr Pepper Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Keurig Dr Pepper's financial performance was strong, demonstrating the resilience of its beverage portfolio and efficient market strategies amidst challenging conditions.
Keurig Dr Pepper reported a 1.8% increase in net sales to $2.86 billion for Q2 2020. Adjusted diluted EPS grew by 10% to $0.33. The company reaffirmed its full-year guidance, expecting constant currency net sales growth in the range of 3% to 4% and adjusted diluted EPS growth in the range of 13% to 15%.
- Net sales increased by 1.8% to $2.86 billion, with a 2.9% increase on a constant currency basis.
- Adjusted diluted EPS grew by 10% to $0.33.
- The company generated strong free cash flow of $524 million, reducing bank debt by approximately $274 million.
- Full-year guidance was reaffirmed, projecting constant currency net sales growth of 3% to 4% and adjusted diluted EPS growth of 13% to 15%.
Headline financials
Revenue & EPS history
Keurig Dr Pepper · Revenue · Quarterly
$2.86B
Revenue by segment
Keurig Dr Pepper · $523M total across 1 segment · Q3 2023
- International$523M—100.0%
Forward guidance
KDP expects to deliver continued growth in the second half of the year. Specifically, for the full-year 2020, KDP continues to expect constant currency net sales growth in the range of 3% to 4%. The Company also continues to expect full-year 2020 Adjusted diluted EPS growth in the range of 13% to 15%, or $1.38 to $1.40 per diluted share. Finally, the Company continues to expect its management leverage ratio in the range of 3.5x to 3.8x at year end 2020 and its management leverage ratio to be below 3.0x within two to three years of the July 2018 merger closing.
Tailwinds
- Constant currency net sales growth in the range of 3% to 4%.
- Adjusted diluted EPS growth in the range of 13% to 15%, or $1.38 to $1.40 per diluted share.
- Management leverage ratio in the range of 3.5x to 3.8x at year end 2020.
- Management leverage ratio to be below 3.0x within two to three years of the July 2018 merger closing.
- Confidence in ability to deliver continued growth in the second half of the year.
Headwinds
- Expectation for significant volatility ahead.
- Potential risks and uncertainties related to the impact of COVID-19 pandemic.
- Risks relating to the integration of the KGM and DPS operations.
- Impact of significant additional debt incurred in connection with the transaction.
- Possibility that the anticipated synergies and other benefits of the transaction will not be realized.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+0.6%
Avg return
Earnings day
-0.4%
Avg return
5 days after
-0.8%
Avg return
30 days after
60%
42 / 70 earnings
Positive
+7.5%
Q1 2026
Best reaction
-7.9%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +7.5% | +8.5% | +9.6% | |
| Q4 2025 | +2.5% | +1.7% | -11.8% | |
| Q3 2025 | +7.3% | +0.0% | +1.9% | |
| Q2 2025 | -0.5% | +1.0% | -21.8% | |
| Q1 2025 | -2.1% | -2.7% | -6.5% | |
| Q4 2024 | +2.4% | -1.8% | +0.4% | |
| Q3 2024 | -5.8% | -10.4% | -11.0% | |
| Q2 2024 | +3.0% | +4.1% | +9.0% | |
| Q1 2024 | +4.3% | +4.2% | +5.7% | |
| Q4 2023 | -4.5% | -6.6% | -5.7% | |
| Q3 2023 | +2.6% | +4.2% | +12.1% | |
| Q2 2023 | +4.2% | +4.9% | +2.3% | |
| Q1 2023 | -7.9% | -8.3% | -11.5% | |
| Q4 2022 | +0.0% | -3.4% | -2.5% | |
| Q3 2022 | +2.0% | -2.4% | -1.3% | |
| Q2 2022 | +4.4% | +3.9% | +4.1% | |
| Q1 2022 | -1.2% | -1.8% | -7.1% | |
| Q4 2021 | +0.6% | +0.3% | -1.3% | |
| Q3 2021 | +5.5% | +5.2% | +2.3% | |
| Q2 2021 | -0.3% | -1.4% | -0.6% | |
| Q1 2021 | +1.8% | +1.4% | +5.0% | |
| Q4 2020 | -3.0% | -2.2% | +12.0% | |
| Q3 2020 | -3.0% | +0.3% | +10.9% | |
| Q2 2020 | -2.1% | -4.2% | -3.8% | |
| Q1 2020 | +3.1% | -1.5% | +5.6% | |
| Q4 2019 | -3.0% | -4.1% | -15.1% | |
| Q3 2019 | +3.7% | +3.7% | +4.0% | |
| Q2 2019 | +5.4% | +3.1% | -2.7% | |
| Q1 2019 | +1.0% | +1.6% | -2.6% | |
| Q4 2018 | -3.5% | -3.5% | +3.8% | |
| Q3 2018 | +4.6% | +4.8% | -3.3% | |
| Q2 2018 | +0.0% | -0.4% | -4.1% | |
| Q1 2018 | +0.8% | +1.0% | +1.3% | |
| Q4 2017 | -0.4% | -0.7% | +1.4% | |
| Q3 2017 | -3.6% | -5.2% | -3.5% | |
| Q2 2017 | -1.4% | -1.2% | -2.0% | |
| Q1 2017 | -6.3% | -7.7% | -5.0% | |
| Q4 2016 | -0.7% | +0.5% | +3.1% | |
| Q3 2016 | -0.4% | -2.0% | -0.7% | |
| Q2 2016 | +0.7% | +0.8% | -4.0% | |
| Q1 2016 | +3.3% | — | — | |
| Q4 2015 | -2.2% | — | — | |
| Q3 2015 | +5.9% | — | — | |
| Q2 2015 | -0.9% | — | — | |
| Q1 2015 | +0.1% | — | — | |
| Q4 2014 | -3.2% | — | — | |
| Q3 2014 | +2.1% | — | — | |
| Q2 2014 | +5.3% | — | — | |
| Q1 2014 | +2.8% | — | — | |
| Q4 2013 | +2.4% | — | — | |
| Q3 2013 | +2.5% | — | — | |
| Q2 2013 | -3.4% | — | — | |
| Q1 2013 | +0.8% | — | — | |
| Q4 2012 | -5.6% | — | — | |
| Q3 2012 | -2.5% | — | — | |
| Q2 2012 | +4.1% | — | — | |
| Q1 2012 | +0.9% | — | — | |
| Q4 2011 | -0.8% | — | — | |
| Q3 2011 | -6.3% | — | — | |
| Q2 2011 | -3.4% | — | — | |
| Q1 2011 | +0.3% | — | — | |
| Q4 2010 | -2.4% | — | — | |
| Q3 2010 | +2.3% | — | — | |
| Q3 2009 | +2.3% | — | — | |
| Q4 2008 | +0.3% | — | — | |
| Q2 2010 | +0.3% | — | — | |
| Q1 2010 | +5.1% | — | — | |
| Q4 2009 | +5.1% | — | — | |
| Q1 2009 | +5.1% | — | — | |
| Q2 2009 | +5.1% | — | — |
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