Dr Pepper Snapple Group 2Q Profits Climb 35 Percent
PLANO, Texas (AP) — Dr Pepper Snapple Group Inc.'s second-quarter net income rose 35 percent, thanks to lower expenses and improved volumes.
The Plano, Texas-based company's profit topped analysts' expectations, and it raised its full-year adjusted earnings forecast.
Shares climbed more than 3 percent in morning trading Thursday.
For the period ended June 30, the seller of beverages such as 7Up, Sunkist and Hawaiian Punch reported that net income increased to $210 million, or $1.06 per share, from $155 million, or 76 cents per share, a year earlier.
The average per-share estimate of analysts surveyed by Zacks Investment Research was for earnings of 92 cents.
Selling, general and administrative expenses declined to $592 million from $619 million, while interest expense dropped to $27 million from $31 million.
Revenue edged up 1.2 percent to $1.63 billion from $1.61 billion, matching Wall Street's forecast.
Carbonated soft drink volume climbed 2 percent, with Canada Dry posting a high single-digit increase. Peñafiel and Schweppes both reported a double digit rise.
Sales volume edged up 1 percent.
Dr. Pepper Snapple expects full-year adjusted earnings in the range of $3.43 to $3.51 per share. Its prior outlook was for $3.38 to $3.46 per share. Analysts surveyed by FactSet predict $3.47 per share.
The company reaffirmed its outlook for 2014 revenue to be flat to up 1 percent.
Dr Pepper Snapple Group's stock added $1.98, or 3.4 percent, to $60.42 in morning trading.
The shares have climbed $9.72, or 20 percent, to $58.44 since the beginning of the year, while the Standard & Poor's 500 index has increased 7.5 percent. The stock has increased $12.12, or 26 percent, in the last 12 months.