Dr Pepper Snapple beats by $0.02, beats on revs; guides FY16 just below consensus
- Reports Q4 (Dec) earnings of $1.00 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.98; revenues rose 2.5% year/year to $1.55 bln vs the $1.53 bln Capital IQ Consensus. Net sales grew on favorable product, package and segment mix, price increases and lower discounts. Reported segment operating profit (SOP) increased 6% after a 2% reduction for foreign currency translation. Contributing to this increase were net sales growth, lower commodity costs and ongoing productivity improvements, partially offset by increases in certain operating costs and a $5 million increase in marketing investments. For the quarter, BCS volume increased 1%, with carbonated soft drinks (CSDs) flat and non-carbonated beverages (NCBs) increasing 4%. By geography, U.S. and Canada volume was flat, and Mexico and the Caribbean volume increased 6%.
- Co issues downside guidance for FY16, sees EPS of $4.20-4.30, excluding non-recurring items, vs. $4.33 Capital IQ Consensus Estimate; sees FY16 revs of +1% to ~$6.34 bln vs. $6.41 bln Capital IQ Consensus Estimate. Collectively, FX translation and transaction are expected to negatively impact net sales by ~2% and core EPS growth by ~4%, or $0.18 per share. The company expects to repurchase $650 million to $700 million of its common stock.