Dr. Pepper Snapple Earnings Beat Estimates, But Gives Downbeat 2016 Outlook

Dr. Pepper Snapple Group Inc. said it had net income of $185 million, or 97 cents per share, up from $150 million, or 77 cents per share, for the same period last year. Adjusted earnings were $1 per share, just above the FactSet consensus of 99 cents. Sales for the quarter totaled $1.55 billion, up slightly from $1.51 billion last year. The FactSet consensus was $1.53 billion. Dr. Pepper Snapple said volume in the U.S. and Canada was flat, while it grew 6% in Mexico and the Caribbean. The Dr. Pepper, 7Up, Sunkist and A&W brands declined while brands including Schweppes, Crush and Squirt grew. The company sees 2016 EPS between $4.20 and $4.30, below the FactSet consensus of $4.34. Sales are expected to rise 1%. Dr. Pepper Snapple plans to return $1 billion to shareholders in stock repurchases and dividends. The company's shares are down 0.9% in premarket trading, but up 19.4% for the past year. The S&P 500 is down 9.8% for the previous 12 months.