NASDAQ$KDP

Keurig Dr Pepper Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Keurig Dr Pepper reported strong financial results, with net sales increasing and adjusted diluted EPS growing, while maintaining market share and reducing the management leverage ratio.

Keurig Dr Pepper reported a strong third quarter, with net sales increasing by 5.2% to $3.02 billion and adjusted diluted EPS growing by 22% to $0.39. The company is confident in its ability to deliver 2020 at the high-end of its guidance and is reinvesting any upside performance in brand marketing and innovation.

  • Net sales increased by 5.2% to $3.02 billion.
  • Diluted earnings per share totaled $0.31, compared to $0.21 in the year-ago period.
  • Adjusted diluted EPS grew 22% to $0.39.
  • The Company generated strong free cash flow totaling $525 million.

Headline financials

Total Revenue

$3.02B

Previous: $2.87B+5.2%
EPS (adj)

$0.39

Previous: $0.32+21.9%
Capital Expenditures

-$356M

Previous: -$208M-71.2%
Free Cash Flow

$87M

Previous: $96M-9.4%
Net Income

$443M

Previous: $304M+45.7%
Operating Income

$753M

Previous: $580M+29.8%
Gross Profit

$1.7B

Previous: $1.63B+4.9%
Cash & Equivalents

$191M

Previous: $74M+158.1%
Total Assets

$49.4B

Previous: $49.4B-0.0%
Stock-Based Comp

$20M

Previous: $13M+53.8%

Revenue & EPS history

Keurig Dr Pepper · Revenue · Quarterly

$3.02B

Q3 2020+5.2%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Keurig Dr Pepper · $523M total across 1 segment · Q3 2023

  • International
    $523M

Forward guidance

KDP expects constant currency net sales growth for the full year at the high end of its 3% to 4% guidance range and Adjusted diluted EPS growth for the full year at the high end of its 13% to 15% guidance range, or $1.38 to $1.40 per diluted share.

Tailwinds

  • Constant currency net sales growth expected at the high end of 3% to 4% guidance.
  • Adjusted diluted EPS growth expected at the high end of 13% to 15% guidance.
  • Company intends to invest any upside performance in marketing and innovation.
  • Management leverage ratio expected in the middle of 3.5x to 3.8x range by year end 2020.
  • Management leverage ratio expected to be below 3.0x within two to three years of the July 2018 merger closing.

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 Q3 2020

Historical avgQ3 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

Earnings price reactions
QuarterReport dateReaction (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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