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Earnings Preview: Dr Pepper Snapple Group - Analyst Blog
4/22/2013 10:10:00 AM
Dr Pepper Snapple Group Inc. ( DPS ) is set to report first quarter 2013 results on Apr 24. Last quarter it posted a 4.71% negative surprise. Let's see how things are shaping up for this announcement.
Factors in this Past Quarter
Dr Pepper posted dismal results for the fourth quarter of
2012, missing the Zacks Consensus Estimates for both revenues and
earnings. Earnings declined year over year as decent sales growth
was offset by weak profits.
Our proven model does not conclusively show that Dr Pepper is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Negative Zacks ESP: This is because the Most Accurate Estimate stands at 46 cents while the Zacks Consensus Estimate is at 47 cents. That is a difference of -2.13%.
Zacks Rank #4 (Sell): Dr Pepper carries Zacks Rank #4 (Sell). We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies from the consumer staple sector you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Flower Foods Inc
), Earnings ESP of +4.88% and Zacks Rank #1 (Strong Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis Report
HILLSHIRE BRAND (HSH): Free Stock Analysis Report
MOLSON COORS-B (TAP): Free Stock Analysis Report
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