S&P 500 (NYSE:SPY) component Dr Pepper Snapple Group (NYSE:DPS) will unveil its latest earnings on Thursday, July 26, 2012. Dr Pepper Snapple Group manufactures and distributes flavored carbonated soft drinks and non-carbonated beverages in North America.
Dr Pepper Snapple Group Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 82 cents per share, a rise of 6.5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 5.7% compared to last year’s $2.95.
Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at net income of 46 cents per share versus a mean estimate of profit of 48 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 8 cents.
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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price rose $4.47 (11.4%), from $39.31 to $43.78. The stock price saw one of its best stretches over the last year between April 12, 2012 and April 20, 2012, when shares rose for seven straight days, increasing 3.7% (+$1.45) over that span. It saw one of its worst periods between February 16, 2012 and February 29, 2012 when shares fell for nine straight days, dropping 4.9% (-$1.95) over that span.
A Look Back: In the first quarter, profit fell 10.5% to $102 million (48 cents a share) from $114 million (50 cents a share) the year earlier, missing analyst expectations. Revenue rose 2.3% to $1.36 billion from $1.33 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.89 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.1% in the second quarter of the last fiscal year, 4.9% in the third quarter of the last fiscal year and 3.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 6.9% in the third quarter of the last fiscal year and 48.2% in the fourth quarter of the last fiscal year before dropping in the first quarter.
Wall St. Revenue Expectations: Analysts are projecting a rise of 3.2% in revenue from the year-earlier quarter to $1.63 billion.
Analyst Ratings: There are mostly holds on the stock with seven of 12 analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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