In this illustration, cans of Dr Pepper soda are displayed on June 3, 2024 in San Anselmo, California.
Justin Sullivan | Getty Images
Keurig Dr Pepper Amazon reported quarterly earnings and revenue that were in line with analysts' expectations on Thursday as higher prices fueled soda sales in the United States.
The company's shares rose 5% in morning trading.
Here's what the company reported compared to what Wall Street was expecting, based on a poll of analysts conducted by LSEG:
Earnings per share: 45 cents adjusted, in line with estimatesRevenue: $3.92 billion, in line with estimates
The beverage company reported second-quarter net income of $515 million, or 38 cents a share, up from $503 million, or 36 cents a share, a year earlier.
Excluding items, Keurig Dr Pepper earnings were 45 cents per share.
Net sales rose 3.5% to $3.92 billion. Volume, which excludes pricing and currency changes, increased 1.8% during the quarter, while prices rose 1.6% compared with the year-ago period.
Keurig Dr Pepper's US, the beverage company that includes Snapple, Canada Dry and Sunkist, reported a 3.3% increase in sales. Its beverage prices rose 2.9% compared to the same period last year. The company's top drink was Dr Pepper Creamy Coconut for a limited time.
Dr Pepper also recently outdid itself. Pepsi As the second most consumed soft drink in the United States, after coca colaThe parent company's larger competitors have seen mixed performance in recent quarters, according to Beverage Digest: PepsiCo's price hikes have led some consumers to turn away from its drinks and snacks, while Coca-Cola's premium offerings like Fairlife and strong international demand have boosted its results.
While soda sales are holding up, sales of still drinks and even energy drinks are under greater pressure because of an “uneven” consumer environment, Keurig Dr Pepper executives said.
Keurig Dr Pepper’s U.S. coffee sales fell 2.1% to $1 billion in the quarter, driven by a 2.9% price decline. K-Cup pod shipments were roughly flat, which the company attributed to strong market share trends.
The company is also moving toward marketing that emphasizes that drinking coffee at home is cheaper than buying it from a coffee shop, hoping to attract thrifty shoppers. The company is also promoting cold brew coffee through K-Cup cold brew pods and other new products in an attempt to win over Starbucks and Dunkin’ fans.
While cold brews account for nearly three-quarters of Starbucks sales, cold brew represents less than 20% of at-home coffee occasions, CEO Tim Cofer said on a company conference call.
The company's international division saw sales rise 15.5% during the quarter, but it represents less than one-sixth of Keurig Dr Pepper's revenue.
The company also confirmed its previous full-year outlook for constant currency revenue growth in the mid-single digit range and adjusted earnings per share growth in the high single digit range.
