Dr Pepper Snapple Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Dr Pepper Snapple Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped.
Margins shrank across the board.
Dr Pepper Snapple Group notched revenue of $1.36 billion. The nine analysts polled by S&P Capital IQ predicted revenue of $1.36 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $1.33 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share on the same basis. GAAP EPS of $0.48 for Q1 were 4.0% lower than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.1%, 180 basis points worse than the prior-year quarter. Operating margin was 14.3%, 90 basis points worse than the prior-year quarter. Net margin was 7.5%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $6.06 billion. The average EPS estimate is $2.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 377 members out of 409 rating the stock outperform, and 32 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Dr Pepper Snapple Group a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dr Pepper Snapple Group is hold, with an average price target of $41.45.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.