(DPS) Dr. Pepper Snapple Group Inc. – $ Earnings Surprises in a Row

Dr. Pepper Snapple Group, Inc. (DPS) reported third quarter results on Nov 5 which surprised on the Zacks Consensus Estimate by 10.20%. It was the fourth earnings surprise in a row.

Earnings per share for the beverage company were 54 cents compared to the Zacks Consensus Estimate of 49 cents.

Net sales, however, fell 4%. The company said it was too early to see the economic recovery translate into higher beverage sales. Liquid refreshment beverage trends remained negative in the quarter.

2009 Guidance

Dr. Pepper Snapple forecasts sales to be in the range of negative 3% to 4%. Earnings per share are expected to be between $1.92 and $1.96 per share.

The current 2009 Zacks Consensus Estimate calls for $1.95 per share.

Value Fundamentals

Dr. Pepper Snapple is a Zacks #2 Rank (buy) stock. It still has attractive value characteristics. It is trading with a forward P/E of 13.5. The company’s price-to-book ratio is 2.31. Dr. Pepper Snapple also has a stellar 1-year return on equity (ROE) of 16.1%.

Zacks Investment Research
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