Dr Pepper Snapple’s Q1 Profit Jumps 28%, Beating View (DPS)


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Beverage giant Dr Pepper Snapple Group Inc. ( DPS ) on Wednesday said its first quarter profit rose 28% from last year, beating analyst estimates, and reaffirmed its full-year outlook.

The Plano, TX-based company reported first quarter net income of $114 million, or 50 cents per share, compared with $89 million, or 35 cents per share, in the year-ago period.

Revenue rose 6.4% from last year to $1.33 billion.

On average, Wall Street analysts expected a smaller profit of 46 cents per share, on lower revenue of $1.31 billion.

Looking ahead, the company reaffirmed its previously-announced 2011 earnings forecast of $2.70 to $2.78 per share, which straddles analysts' expectations for $2.74 per share.

Dr Pepper Snapple shares were mostly flat in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of Dr. Pepper Snapple ( DPS ) since Feb.16, 2011, when the stock was trading at $34. The company has a 2.59% dividend yield, based on last night's closing stock price of $38.63.

Dr Pepper Snapple Group Inc. ( DPS ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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