It’s Earnings Time: What to Do with Dr Pepper Snapple Group, Inc. (NYSE:DPS) Stock


Dr Pepper Snapple Group, Inc. (DPS) retreated -2.14% to reach at the floor price of $92.41 as the company is set to share its next quarterly earnings on July 21, 2016. DPS stock trades between $92 and $94.29 before the earnings release. Let’s take a closer look at the June 2016 earnings estimates, particularly the things investors should pay close attention to. Earnings (EPS) for the recently concluded quarter is projected to come in at $1.2/share with $1.69B in revenue.

Earnings Track Record: If history is anything to go by, Dr Pepper Snapple Group, Inc. (DPS) managed to beat quarterly EPS forecasts in 11 of the trailing three fiscal years, and has a positive trend with an average surprise of 91%. Last time the company reported, Dr Pepper Snapple Group, Inc. generated $0.94 in earnings per share, surpassing the mean forecast of $0.86. Revenues reached $1.49B in the March 2016 quarter, which was higher than the consensus $1.47B projection. On the other hand, in the December 2015 quarter it recorded a net $1.55B revenue with EPS of $1. Wall Street had projected $1.53B and $0.98, respectively. For comparison, there was a revenue of $1.63B and earnings of $1.08 in the September 2015 quarter.

Future Earnings: After upcoming financial results, all eyes will be on the outlook or guidance for the next reporting quarter (September 2016). Analysts, on average, predict Dr Pepper Snapple Group, Inc. to earn $1.13 in earnings per share (EPS) on revenue of $1.69B. The earnings-per-share consensus range is $1.1-$1.17 on sales between $1.67B and $1.71B.

Stock Trend vs. Analyst View: The stock is trading up 30.6 percent versus 1-year low of $72 and stands -3.57 lower from its peak of $95.87. The consensus price target of $95.67 means that the market expects Company shares to increase by 3.53% in the short run. The sell-side target prices range from $85 to $102. In the last month the stock has moved in price 4.04%, with a one year change of 22.36%. The last trading session volume compares with the 1.45M average and market worth floats around $17.55B.

Recent Analyst Rating Changes: The buoyancy in the prospect of Dr Pepper Snapple Group, Inc. (DPS) is getting weaker by the somewhat negative sentiment (2.9 on a 5-point scale) that brokerage firms have issued concerning it. Wall Street analysts on the average recommend the company shares as Hold. Credit Agricole has been covering shares of DPS, so it’s most recent view is worth a look. In a research note released on January 22, 2016, analysts at Credit Agricole lifted the stock to Outperform from Underperform.  Another noteworthy analyst activity was recorded on January 13, 2016. Goldman analysts downgraded the stock to Sell from Neutral.