Dr Pepper Snapple Group Inc.
) reached a 52-week high of $50.37 on Thursday, May 15, 2013
following the announcement of solid first quarter 2013 earnings
results and positive 2013 outlook on Apr 24. The closing price of
this beverage company on May 15 was $50.36, yielding a year to
date return of 11.4%.
Share Price Drivers
Share prices have been rising since Dr Pepper Snapple reported
first quarter 2013 adjusted earnings of 53 cents, which is 15.2%
year-over-year increase on the back of sales growth and increase
in adjusted operating income. Earnings also surpassed the Zacks
Consensus Estimate by 12.8%.
Dr Pepper's net sales grew 1% year over year to $1.38 billion
on the back of gains from favorable price/mix. Gross profit
improved 3.0% in the quarter to $796 million. Adjusted operating
income increased 9.7% in the quarter to $204 million on the back
of gains from improving productivity.
The company maintained its prior guidance for fiscal 2013.
Full-year 2013 adjusted earnings are expected to be in the range
of $3.04 to $3.12 per share. Dr Pepper expects 2013 sales to grow
The solid quarterly results and positive full-year 2013
outlook for the upcoming quarters led to an upward bias in
estimate revisions. In fact, the Zacks Consensus Estimate for
2013 and 2014 increased a respective 1.0% and 0.3% to $3.10 and
$3.33 per share over the last 30 days. Moreover, DPS has beaten
the Zacks Consensus Estimate in three out of the past four
quarters, with an average surprise of 3.58%.
Dr Pepper carries a Zacks Rank #3 (Hold).
Some other companies from the consumer staple sector that are
performing well include
The Coca-Cola Company
). While Flower Foods carries a Zacks Rank #1 (Strong Buy), Coca
Cola and Pepsico carry a Zacks Rank #2 (Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
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