Keurig Dr Pepper (KDP) - Get Report shares were set to decline in trading Thursday following the company's fourth-quarter revenue miss, even though sales were boosted year over year following the merger between coffee pod maker Keurig and soft drink maker Dr Pepper in July.
The company reported fourth-quarter net sales that more than doubled to $2.81 billion from $1.17 billion a year ago, but missed analysts' expectations of $2.84 billion. Earnings of 30 cents per share matched expectations.
"We finished 2018 on a strong note, successfully managing through the merger integration and achieving full-year results in line with our 2018 targets. We also delivered strong in-market performance, growing market share in carbonated soft drinks, single-serve coffee and other key categories," CEO Bob Gamgort said.
The company reported that packaged beverage sales and coffee systems sales were basically the same for the period, with the former generating $1.18 billion in revenue and the latter generating $1.16 billion in revenue.
However, coffee systems net sales were down 0.5% year over year.
For the current year, the company expects earnings to range between $1.20 and $1.22 per share. That is below the $1.23 per share expectations of analysts polled by FactSet.
Keurig Dr Pepper shares were down 5.5% Thursday.