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Does The Street Have Dr Pepper Snapple Group Figured Out?

By Seth Jayson – Updated Apr 10, 2017 at 12:45PM

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Checking expectations

Dr Pepper Snapple Group (NYSE: DPS) is expected to report Q2 earnings on July 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Dr Pepper Snapple Group's revenues will increase 1.9% and EPS will contract 0.0%.

The average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $0.85.

Revenue details
Last quarter, Dr Pepper Snapple Group reported revenue of $1.38 billion. GAAP reported sales were 1.3% higher than the prior-year quarter's $1.36 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.53. GAAP EPS of $0.51 for Q1 were 6.3% higher than the prior-year quarter's $0.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 57.2%, 10 basis points better than the prior-year quarter. Operating margin was 14.3%, 20 basis points better than the prior-year quarter. Net margin was 7.7%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.15 billion. The average EPS estimate is $3.09.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 401 members out of 432 rating the stock outperform, and 31 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 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 $45.73.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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Dr Pepper Snapple Group, Inc. Stock Quote
Dr Pepper Snapple Group, Inc.
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