Keurig Dr Pepper Inc. (NYSE: KDP) reported Q1 EPS of $0.25, $0.02 better than the analyst estimate of $0.23. Revenue for the quarter came in at $2.5 billion versus the consensus estimate of $2.54 billion.

Commenting on the quarter, Keurig Dr Pepper Chairman and CEO Bob Gamgort stated, "Our first quarter results represent a good start to the year, with strong EPS delivery and all four segments registering underlying net sales growth. In addition, our in-market performance was also solid, as we grew retail dollar consumption across the majority of our portfolio and held or grew market share in nearly all categories. Our cash flow generation remains strong and we continue to reduce debt in line with our deleveraging targets. We remain confident in our targets for 2019 and our long-term value creation framework."

GUIDANCE:

Keurig Dr Pepper Inc. sees FY2019 EPS of $1.20-$1.22, versus the consensus of $1.21.

Supporting this guidance are the following unchanged expectations:

• Adjusted diluted EPS growth in 2019 in the range of 15% to 17%
• Net sales growth of approximately 2%, consistent with the Company's long-term merger target of 2-3%, which incorporates an approximate 100 bps unfavorable impact from the changes in the Allied Brands portfolio.
• Merger synergies of $200 million in 2019, consistent with the Company's long-term merger target for $200 million per year over the 2019-2021 period.
• Other expense, net is expected to approximate $30 million of expense in 2019 and assumes no gains related to changes in the Allied Brands portfolio.
• Adjusted interest expense is expected to be in the range of $570 million to $590 million, reflecting ongoing deleveraging and the continued benefit of unwinding interest rate swap contracts.
• The Adjusted effective tax rate is expected to be in the range of 25.0% to 25.5%.
• Diluted weighted average shares outstanding are estimated to be approximately 1,420 million.
• The Company continues to expect significant cash flow generation and rapid deleveraging, with a targeted leverage ratio below 3.0x in two to three years from the July 2018 closing of the merger.

For earnings history and earnings-related data on Keurig Dr Pepper Inc. (KDP) click here.