Cowen & Co Analyzes Dr. Pepper Snapple's Earnings

Courtesy of Benzinga.

In a report published Friday, Cowen & Co analysts maintained a Market Perform rating on Dr Pepper Snapple Group Inc. (NYSE: DPS), with a price target of $80, after the company reported its 1Q15 results,

Dr Pepper Snapple Group reported its core EPS at $0.81, representing 10.2 percent growth. The figure was better than Cowen’s estimate of $0.78 and the consensus of $0.76.

Net sales growth came in at 3.8 percent, with local currency net sales growth at 4.8 percent, being unfavorably impacted by 1 percent due to currency headwinds. Volumes contributed 2 percent to sales growth, with a healthy price/mix of 2.8 percent accounting for the balance. Pro forma operating income grew 9.3 percent.

“The strong quarter was driven by growth across all three of the company’s operating segments,” the analysts said.

In the report Cowen & Co noted, “The beverage concentrates segment grew local currency net sales by 2.4%, driven by a robust 4.4% of price/mix as volumes declined 2.0%…The packaged beverage segment performed well, with net sales (reported and local currency) increasing by 4.7%. The increase was driven by impressive volume growth of 4% and favorable product mix, partially offset by higher promotional spending.”

The company maintained its previous guidance for FY15 EPS at $3.80-$3.88.

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