Beverage company Keurig Dr Pepper (NASDAQ:KDP) will be reporting earnings tomorrow morning. Here’s what to expect.

Keurig Dr Pepper missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $3.89 billion, up 2.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

Is Keurig Dr Pepper a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Keurig Dr Pepper’s revenue to grow 3.8% year on year to $4.01 billion, improving from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Keurig Dr Pepper has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Keurig Dr Pepper’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coca-Cola delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 6.5%, and Philip Morris reported revenues up 7.3%, topping estimates by 2.8%. Coca-Cola traded up 6.5% following the results while Philip Morris was also up 10.2%.

Read our full analysis of Coca-Cola’s results here and Philip Morris’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.5% on average over the last month. Keurig Dr Pepper is up 7.4% during the same time and is heading into earnings with an average analyst price target of $36.76 (compared to the current share price of $34.04).

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