Keurig Dr Pepper Stock Rises Ahead Of Q4 Earnings: Retail Stays Bullish

Shares of Keurig Dr Pepper (KDP) have risen 8.49% in the past five days ahead of the beverage giant's fourth-quarter earnings, and retail sentiment has remained bullish.

According to Stocktwits data, Wall Street analysts expect Keurig to post earnings per share of $0.57 on revenue of $4.01 billion.

The company has beaten EPS expectations four times in the past four quarters and revenue estimates twice in the same period.

According to an Investing.com report, analysts have generally reaffirmed their estimates over the last 30 days, expecting the business to "stay the course" ahead of earnings.

Last month, Piper Sandler initiated coverage of Keurig with a 'Neutral' rating and $35 price target. According to the firm, beverage categories generally have attractive tailwinds globally, especially with rising incomes in emerging markets.

Even as Piper Sandler expects the company may drive growth in the second half of 2025 and 2026 from its addition of Ghost into its distribution network, the "significant" rise in coffee costs weighs on the company.

Deutsche Bank upgraded Keurig Dr Pepper to Buy from Hold with a price target of $39, up from $37. It sees line-of-sight to stable earnings as likely fueled by sizable productivity initiatives and incremental contributions from partner brands in both segments.

However, TD Cowen lowered the firm's price target to $36 from $39 with a 'Hold' rating. Given the regulatory threat surrounding GLP-1 usage, the research firm believes 2025 will be challenging for the food and beverage industry.

Despite the concern about the broader sector, sentiment on Stocktwits remained 'bullish.' Message volume also moved to 'high' from 'extremely low'.

One bullish user called the stock, along with other consumer staples, "defensive" because prices are above their 50-day moving averages.

During its Q3 earnings release, Keurig Dr Pepper reportedly reaffirmed its FY24 guidance for constant currency net sales growth in the mid-single digit range and adjusted diluted EPS growth in the high single-digit range.

Keurig Dr Pepper's soft drinks brands include Keurig, Dr Pepper, Canada Dry, A&W, and Snapple.

Keurig Dr Pepper' stock is up 6.23% year-to-date.

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