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Dr. Pepper Snapple (DPS) Misses Q4 Earnings Estimates

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Dr Pepper Snapple Group, Inc. manufactures and distributes some of the most popular carbonated soft drinks and non carbonated beverage brands in the U.S. It holds the #1 position in the flavored non-cola CSD market in the U.S. with a market share of almost 40% in the U.S. Dr Pepper soft drink, its most popular CSD brand, holds the #2 position in the flavored CSD market in the U.S.

Dr. Pepper delivered strong performance in the first three quarters of 2016, on the back of pricing gains, innovations, strong NCB performance, powerful marketing programs and productivity improvements. However, currency headwinds, increased marketing expenses, soft volumes are some of the headwinds hurting Dr. Pepper’s results.

Investors should however note that the recent earnings estimate revisions for DPS has been stable. Moreover, DPS has solid history when it comes to recent earnings reports as the stock has posted positive surprises in all of the last four quarters with an average surprise of 5.45%.

Currently, DPS has a Zacks Rank #4 (Sell), but that could change following Dr. Pepper’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DPS missed on earnings. Our consensus earnings estimate called for EPS of $1.06 per share, and the company reported EPS of $1.04 instead.

Revenues: DPS reported revenues of $1.578 billion. This came almost in line with our consensus estimate of $1.577 billion.

Key Stats to Note: Sales volume was up 1% in the quarter.

Dr Pepper Snapple expects full-year 2017 earnings in the range of $4.44 to $4.54 per share.

Stock Price: Shares were up 0.4% in pre-market trading at the time of writing.

Check back later for our full write up on this DPS earnings report later.

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