On Apr 28, 2014, shares of
Dr Pepper Snapple Group Inc.
) reached a 52-week high of $55.59, eventually closing at $55.40.
The closing price represents a year-to-date return of around
Share Price Drivers
Share price of Dr Pepper Snapple has been rising ever since it
reported solid first quarter 2014 results on Apr 23. Dr Pepper
Snapple beat the Zacks Consensus Estimate for both revenues and
earnings in the quarter.
Adjusted earnings of 74 cents per share increased 40% year over
year on the back of strong margins and solid revenues.
Revenues of $1.40 billion also beat the Zacks Consensus Estimate
by 1.5% and the year-ago level by 1% on the back of improving
sales volumes, price increases and favorable product/package mix,
offset by unfavorable foreign translations and segment mix.
Dr Pepper rebounded in the quarter with stronger volumes in most
of the segments. Sales volume was up 1% in the quarter driven by
2% volume gain in the Latin American segment and a 3% volume gain
in Beverage Concentrates.
In addition, profits improved significantly during the quarter.
Reported gross margins grew 320 basis points and operating
margins grew 290 basis points driven by productivity improvements
and lower marketing and people-related expenses.
Dr Pepper has sound long-term fundamentals and a strong position
in the flavored CSD market. It is reducing costs and regularly
returning cash to shareholders.
Dr Pepper's carries a Zacks Rank #2 (Buy).
Other companies worth considering in the consumer goods sector
Coca-Cola Amatil Ltd.
) with a Zacks Rank #1 (Strong Buy) and
Coca-Cola Enterprises Inc.
Monster Beverage Corp.
) with a Zacks Rank #2.
COCA-COLA ENTRP (CCE): Free Stock Analysis
COCA-COLA AMATI (CCLAY): Get Free Report
DR PEPPER SNAPL (DPS): Free Stock Analysis
MONSTER BEVERAG (MNST): Free Stock Analysis
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