Dr Pepper Snapple Group Earnings on Deck

S&P 500 (NYSE:SPY) component Dr Pepper Snapple Group (NYSE:DPS) will unveil its latest earnings on Wednesday, October 24, 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 estimate of analysts is for net income of 77 cents per share, a rise of 8.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 79 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 77 cents during the last month. Analysts are projecting profit to rise by 6.1% compared to last year’s $2.96.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 85 cents per share against a mean estimate of net income of 82 cents per share. In the first quarter, it missed forecasts by 2 cents.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.8 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. The company regressed in this liquidity measure from 0.89 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 22.8% to $1.73 billion while assets rose 10.3% to $1.39 billion.

Stock Price Performance: Between October 12, 2012 and October 18, 2012, the stock price rose $1.81 (4.2%), from $43.46 to $45.27. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 4.7% (+$2.04) 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 second quarter, profit rose 3.5% to $178 million (83 cents a share) from $172 million (77 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.5% to $1.62 billion from $1.58 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.9% in the third quarter of the last fiscal year, 3.5% in the fourth quarter of the last fiscal year and 2.3% in the first quarter before increasing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 12% for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $1.57 billion in revenue this quarter, a rise of 2.6% from the year-ago quarter. Analysts are forecasting total revenue of $6.06 billion for the year, a rise of 2.7% from last year’s revenue of $5.9 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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