Aug 6 - Keurig Dr Pepper left its annual guidance intact after posting second-quarter sales and profit that beat analyst forecasts. The company cited demand strength in its soda and energy drink brands, while noting that coffee demand remains challenging.
Shares of the beverage company rose about 2% in premarket trading, and the stock has gained nearly 10% so far this year.
Keurig Dr Pepper said quarterly net sales increased 75.6% to $7.31 billion. That figure compared with analysts' expectations of $7.24 billion, according to data compiled by LSEG. On an adjusted basis, the company reported earnings of $0.57 per share, above the $0.54 per-share expected by analysts.
Management pointed to the performance of its U.S. Refreshment Beverages division as a primary growth driver. Sales in that unit rose 10%, supported by demand for Dr Pepper, Ghost energy drinks and Electrolit hydration products.
The results arrive as Keurig Dr Pepper continues to reshape its operations following the $18 billion acquisition of coffee company JDE Peet's completed last August. The firm is also preparing for a planned separation that will split its coffee operations from its other beverage businesses.
Looking further ahead, Keurig Dr Pepper reiterated its 2026 financial expectations. The company still expects net sales to fall within a range of $25.9 billion to $26.4 billion, and it projects adjusted earnings per share growth in a low-double-digit range.
While soda and energy portfolios contributed to the better-than-expected quarter, the company continues to navigate a more difficult environment for coffee demand even as it advances strategic changes tied to the JDE Peet's acquisition and the forthcoming separation of businesses.