Dr Pepper Snapple Group (DPS) Misses Q2 EPS by 3c, Beats on Revenues; Reaffirms FY17 Core EPS Midpoint Below Consensus

Dr Pepper Snapple Group (NYSE: DPS) reported Q2 EPS of $1.25, $0.03 worse than the analyst estimate of $1.28. Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.77 billion.

2017 Full Year Guidance includes the following items:

• Organic volume growth is still expected to be just over 1%; total volume growth is still expected to be approximately 2%, inclusive of the Bai acquisition, which closed on January 31, 2017.
• Net sales growth is now expected to be about 4.5%, including the Bai acquisition, which is still expected to add approximately 2 percentage points to growth.
• The impact of the Bai acquisition is now expected to be $0.07 dilutive to Core EPS.
• Collectively, foreign currency translation and transaction are now expected to reduce Core EPS by $0.04, primarily driven by the Mexican peso.
• Excluding the Bai acquisition, we continue to expect packaging and ingredient costs to be inflationary by approximately 0.5% on a constant volume/mix basis.
• The company continues to expect its full year core tax rate to be approximately 34%.
• The company continues to expect to repurchase shares of its common stock of $450 million to $500 million.
• The company continues to expect capital spending to be approximately 3% of net sales.
• Taking the above items into consideration, the company continues to expect 2017 Core EPS in the $4.56 to $4.66 range.

GUIDANCE:

Dr Pepper Snapple Group sees FY2017 EPS of $4.56-$4.66, versus the consensus of $4.65.

For earnings history and earnings-related data on Dr Pepper Snapple Group (DPS) click here.

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