Dr. Pepper Snapple Q4 Results Beat View
But Sees 2016 Results Below Estimates
Beverage maker Dr Pepper Snapple Group Inc. (DPS) on Wednesday reported an increase in profit for the fourth quarter from last year on higher revenues and lower expenses. The results for the quarter beat analysts' expectations. However, the company forecast core earnings and revenue growth for fiscal 2016 below analysts' estimates.
The Plano, Texas-based company's fourth-quarter net income increased to $185 million or $0.97 per share from $150 million or $0.77 per share a year ago.
Excluding items, core earnings for the quarter were $1.00 per share, compared to $0.88 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose to $1.55 billion from $1.51 billion last year. Analysts had a consensus revenue estimate of $1.53 billion for the quarter.
Net sales increased 2 percent after a 2 percent reduction for foreign currency translation. Net sales grew on favorable product, package and segment mix, price increases and lower discounts.
For the quarter, bottle case sales volume increased 1 percent, with carbonated soft drinks flat and non-carbonated beverages up 4 percent.
Looking ahead to fiscal 2016, the company forecast reported net sales to be up approximately 1 percent and core earnings per share in a range of $4.20 to $4.30.
Collectively, foreign currency translation and transaction are expected to negatively impact net sales by approximately 2 percent and core earnings per share growth by approximately 4 percent, or $0.18 per share.
Analysts currently expect earnings of $4.33 per share on revenue growth of 2.3 percent to $6.41 billion for the year. (dpa)
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