Courtesy of Benzinga.
Dr Pepper Snapple Group (NYSE: DPS) reported a 35% rise in its second-quarter profit and lifted its forecast for the year.
Dr Pepper Snapple raised its full-year earnings forecast by $0.05 per share to a range of $3.43 per share to $3.51 per share.
The Plano, Texas-based company posted a quarterly profit of $210 million, or $1.06 per share, versus a year-ago profit of $155 million, or $0.76 per share. The company’s income from operations surged to $348 million, from $285 million.
Its sales rose 1.2% to $1.63 billion. However, analysts were expecting earnings of $0.90 per share on revenue of $1.62 billion.
The company’s soda volume climbed 2%, while the namesake Dr Pepper brand’s volume fell 1%. 7UP reported flat volumes in the quarter. Bottler-case-sales volume climbed 1%, while noncarbonated drinks volume dropped 4%.
Volume of Snapple dropped 3%, while Hawaiian Punch volume fell 12%.
Dr Pepper Snapple’s gross margin rose to 59.2% from 58%, while selling, general and administrative expenses dropped 4.4%.
DPS President and CEO Larry Young said, “As I look back on the first half of the year, there’s no question that we’ve posted strong results in a tough environment. Our teams remained focused on executing our strategy, and we’ve made good progress against our key priorities.”
Dr Pepper Snapple shares surged 6.09% to $62.00 in pre-market trading.
