Non-alcoholic beverages maker Dr Pepper Snapple Group Inc. (DPS) is scheduled to release its financial results for the third quarter before the market opens Thursday, with analysts expecting earnings of $0.49 per share on revenues of $1.44 billion. For the third quarter of fiscal 2008, the company reported earnings before items of $0.45 per share.
Dr Pepper manufactures, markets and distributes more than 50 brands and several flavors of carbonated soft drinks, ready-to-drink teas, juices, mixers, waters and other beverages. The company's portfolio includes Dr Pepper, Snapple, 7UP, Mott's, A&W, Sunkist Soda, Canada Dry, Hawaiian Punch, Schweppes, Peñafiel, Squirt, Clamato, Mr & Mrs T Mixers, Rose's, Yoo-hoo and other consumer favorites.
Earlier in September, the company reaffirmed its full-year 2009 forecast, still expecting earnings, excluding certain items, in the range of $1.88 - $1.96 per share, with net sales, as adjusted, to be up 2% - 4%. Dr Pepper Snapple continues to project full-year earnings in the range of $2.03 -$2.11 per share, on reported net sales decrease of 2% - 4%. The reported sales forecast includes the impact of loss of Hansen product distribution and the impact of foreign currency.
In mid August, the company had boosted its full-year earnings forecast to $2.03 -$2.11 per share from its prior outlook range of $1.85 - $1.93 per share. The company also lifted its adjusted earnings forecast to $1.88 - $1.96 from its previous estimate of between $1.70 and $1.78 per share.
For the previous quarter, the Plano, Texas-based soft drinks company posted higher profit, totaling $158 million or $0.62 per share, compared to $108 million or $0.42 per share in the prior-year quarter. Net sales for the quarter declined 4% to $1.48 billion from $1.55 billion in the previous year.
Among other players in the field, Coca-Cola Enterprises Inc. (CCE) posted third-quarter net income of $247 million or $0.50 per share, higher the prior-year's $214 million or $0.44 per share, as lower costs offset a 3% drop in operating revenues due to lower volume. Net operating revenues decreased to $5.57 billion from $5.74 billion in the prior-year period.
Another peer, Pepsi Bottling Group Inc. (PBG), a distributor of Pepsi-Cola beverages, reported higher third-quarter profit, driven by tax audit settlement and mark-to-market related gains. Net income rose to $310 million from $274 million in the prior-year quarter, and net income attributable to the company was $254 million or $1.14 per share, compared with $231 million or $1.06 per share last year. Meanwhile, net revenues dropped 5% to $3.63 billion from $3.81 billion in the previous year, reflecting lower volume. On a currency neutral basis, the company's worldwide revenue increased 2%.
The Purchase, New York-based PepsiCo Inc. (PEP) reported higher third-quarter profit, totaling $1.72 billion or $1.09 per share, compared to $1.58 billion or $0.99 per share in the year-ago period, helped by productivity and cost control across its businesses. However, net revenues edged down 1.5% to $11.08 billion from $11.24 billion reported in the previous year.
For fiscal 2009, PepsiCo reaffirmed its guidance for net revenue and core earnings per share of mid-to high-single-digit constant currency growth over its fiscal 2008 core earnings per share of $3.68. Further, the company targets 2010 earnings growth in the range of 11% - 13% in core constant currency.
Dr Pepper Snapple shares, which have been trading between $11.83 and $30.65 in the past 52 weeks, closed Wednesday's trading session at $27.82.
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