By James Rogers
Keurig Dr. Pepper Inc.'s stock down 1.8% premarket
Keurig Dr. Pepper Inc.'s stock fell before market open on Thursday after the company's third-quarter earnings fell sharply from the year-earlier as inflationary pressures weighed.
The company's stock was down 1.8% premarket, after ending Wednesday's session up 0.5%. The S&P 500 index ended Wednesday down 0.7%.
Keurig Dr. Pepper (KDP) earned 13 cents a share on net income of $180 million, compared with 37 cents a share on net income of $530 million in the prior year's quarter. On an adjusted basis, Keurig Dr. Pepper earned 46 cents a share, matching the FactSet consensus.
The beverage company's revenue was $3.62 billion, compared with $3.25 billion in the prior year's quarter. Analysts surveyed by FactSet were looking for sales of $3.63 billion.
The company attributed its third-quarter earnings performance to the "unfavorable year-over-year impact of items affecting comparability."
Keurig Dr. Pepper's operating income was $394 million, compared with $795 million in the same period last year, which reflected a $311 million non-cash impairment charge in the current quarter on the Bai brand. Higher gross profit, partially offset by continued broad-based inflationary pressures and increased marketing investment, also impacted the company's results.
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The company said that all four of its product segments grew sales during the quarter.
"While the macro landscape remains challenging, our cold beverages portfolio continues to perform exceptionally well, with strong in-market execution and increased marketing investment driving consistent growth in LRB [Liquid Refreshment Beverage] market share," said Keurig Dr. Pepper CEO CEO Ozan Dokmecioglu, in the earnings release. "At the same time, our coffee business has steadily recovered from the significant supply chain disruption earlier this year and is poised to deliver strong sales and earnings growth in the fourth quarter."
The company reaffirmed its full-year guidance for constant currency net sales growth in the low-double-digit range and adjusted earnings per share growth in the mid-single-digit range.
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(END) Dow Jones Newswires
October 27, 2022 07:44 ET (11:44 GMT)
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