Non-alcoholic beverage maker Dr Pepper Snapple Group, Inc. (DPS) Wednesday reported a higher first-quarter profit that beat analysts' expectations, reflecting an increase in net sales, despite lower volumes. The company also reaffirmed its core earnings and sales growth outlook for the full year.
Larry Young, president and CEO of the company said, "...Despite continued category headwinds, a fragile U.S. consumer and abnormally cold weather across the Northeast and Midwest, our business results remained solid for the quarter."
In the first quarter, the company's net income increased to $106 million or $0.51 a share from $102 million or $0.48 per share in the previous year.
Excluding an unrealized commodity mark-to-market loss, core earnings per share in the recent quarter were $0.53. The company's core earnings were $0.46 in the prior year. On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.46 for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter increased 1 percent year-over-year to $1.38 billion, reflecting positive price/mix and favorable discounts, partially offset by a 2 percent decline in sales volumes. Analysts estimated revenues of $1.39 billion for the quarter.
Looking ahead to full year 2013, the company still expects earnings per share to be in the $3.04 to $3.12, excluding impact of commodity mark-to-market gains and losses.
The firm continues to expect full-year reported net sales growth of about 3 percent. Analysts are looking for earnings of $3.07 per share, on revenues of $6.16 billion for the year.
DPS is currently trading at $48.95, up $1.17 or 2.45 percent, on a volume of 766 thousand shares.
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