Keurig Dr Pepper Inc. (NYSE: KDP) reported Q4 EPS of $0.35, in-line with the analyst estimate of $0.35. Revenue for the quarter came in at $2.93 billion versus the consensus estimate of $2.96 billion.

Commenting on the announcement, Keurig Dr Pepper Chairman and CEO Bob Gamgort stated, "We delivered strong performance for 2019, with underlying net sales growth in all four segments and EPS growth above our merger target range. In-market performance was healthy across our portfolio, as innovation, marketing and in-store execution drove share growth in key segments. Free cash flow continued to be robust, enabling us to rapidly delever. As we look toward 2020, we are increasing our investment behind growth drivers, leading to our expectation that revenue will accelerate above our merger targets, while still delivering double-digit EPS growth. We continue to expect that we will generate our merger target synergies of $600 million and three-year EPS growth within our target range of 15% to 17%."

GUIDANCE:

Keurig Dr Pepper Inc. sees FY2020 EPS of $1.38-$1.40, versus the consensus of $1.40.

KDP Adjusted Guidance for 2020 KDP expects net sales growth in 2020 to accelerate to 3.0% to 4.0%, versus the Company\'s merger target of 2.0% to 3.0%. This momentum is expected to be fueled by investments KDP is planning across the business, including in the areas of innovation, new partnerships, in-store execution, marketing and research and development.

Adjusted diluted EPS growth in 2020 is expected to be in the range of 13% to 15%, or $1.38 to $1.40 per diluted share, reflecting the opportunities the Company is pursuing and the investments it is planning to make to drive accelerated top-line growth. Over the three-year period ending 2021, the Company continues to expect to deliver Adjusted diluted EPS growth in the range of 15% to 17%, in line with its merger target.

Supporting this guidance are the following expectations:

• Merger synergies of $200 million in 2020, consistent with the Company\'s long-term merger target for $200 million per year over the 2019-2021 period.
• Adjusted interest expense is expected to be in the range of $530 million to $545 million, reflecting ongoing deleveraging and some benefit from unwinding interest rate swap contracts.
• The Adjusted effective tax rate is expected to be in the range of 24.5% to 25.0%.
• Diluted weighted average shares outstanding are estimated to be approximately 1,425 million.
• Management leverage ratio is expected to be in the range of 3.5x to 3.8x at year end 2020.

The Company continues to expect to achieve a management 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.