Dr Pepper Snapple Group Earnings: Here’s Why Investors are Happy Now

Dr Pepper Snapple Group, Inc. (NYSE:DPS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4%.

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Dr Pepper Snapple Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.22% to $0.53 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 1.32% to $1.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dr Pepper Snapple Group, Inc. reported adjusted EPS income of $0.53 per share. By that measure, the company beat the mean analyst estimate of $0.46. It missed the average revenue estimate of $1.39 billion.

Quoting Management: DPS President and CEO Larry Young said, “Once again we grew both volume and dollar share in CSDs in Nielsen-measured markets and we continued to expand distribution on our tea and juice portfolios. Despite continued category headwinds, a fragile U.S. consumer and abnormally cold weather across the Northeast and Midwest, our business results remained solid for the quarter. The launch of the Core 4 and RC TEN platform is well underway, and we have seen some early success in the accounts where we currently have distribution. The TEN advertising campaign began airing in mid-March, letting consumers know that they can get both great taste and lower calories with TEN. I remain confident that we will deliver our commitments for the year as our organization continues to embrace Rapid Continuous Improvement and our TEN platform continues to gain traction with both consumers and retailers.”

Key Stats (on next page)…

EPS decreased 35.37% from $0.82 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.91 to a profit $0.88. For the current year, the average estimate has moved down from a profit of $3.20 to a profit of $3.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)