Another Quarter Of Solid Growth Prompts Another Increase In Full-Year EPS Guidance For Dr Pepper

DPS: Dr Pepper Snapple logo
DPS
Dr Pepper Snapple

Dr Pepper Snapple (NYSE:DPS) announced solid results in Q3 on October 27, resulting in another increase in full-year core EPS guidance for the company, after it increased expectations following the announcement of Q2 results. Dr Pepper’s volume sales in U.S. CSDs are much lower than that for both Coca-Cola and PepsiCo, but compared to its much larger compatriots, the former is less exposed to the effects of currency translation. In 2015, while 46% and 56% of Coca-Cola and PepsiCo’s net sales came from the U.S., a larger 89% of Dr Pepper’s revenue came from the home market. Dr Pepper is also more reliant on sales of carbonated soft drinks (CSD) compared to both Coca-Cola and PepsiCo, with CSDs forming 82% of its net volume last year. However, despite being heavily dependent on the declining U.S. CSD market, Dr Pepper Snapple has been able to increase both its volume and revenue in this market in the last few years owing to its increasing market share, by increasing its reach and availability. Solid operational performance, leading to an increase in margin, despite a decline in top line, pushed up estimates for the full-year earnings for Dr Pepper.

DPS Q&A 22

Have more questions on Dr Pepper Snapple? See the links below.

Relevant Articles
  1. What Should You Do With Danaher Stock At $250 After Q1 Beat?
  2. Will A Macau Recovery Drive MGM Stock Higher Following Q1 Results?
  3. Lockheed Martin Stock Will Likely Remain In Focus After A Stellar Q1
  4. Up 17% YTD, What To Expect From eBay Q1 Results?
  5. Rising 21% This Year, What Lies Ahead For Exxon Stock Following Q1 Earnings?
  6. Should You Pick General Electric Stock At $165?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Dr Pepper Snapple

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology