Dr Pepper Snapple Group's Latest EPS Top Last Year's by 22%

Seth Jayson, The Motley Fool
Updated

Dr Pepper Snapple Group (NYS: DPS) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dr Pepper Snapple Group met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.

Gross margin dropped, operating margin shrank, and net margin improved.

Revenue details
Dr Pepper Snapple Group reported revenue of $1.46 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $1.45 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $1.41 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.82. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share on the same basis. GAAP EPS of $0.77 for Q4 were 57% higher than the prior-year quarter's $0.49 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.7%, 210 basis points worse than the prior-year quarter. Operating margin was 18.5%, 50 basis points worse than the prior-year quarter. Net margin was 11.4%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $6.06 billion. The average EPS estimate is $2.94.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 378 members out of 405 rating the stock outperform, and 27 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Dr Pepper Snapple Group a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dr Pepper Snapple Group is hold, with an average price target of $40.27.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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