Dr Pepper Snapple’s 2Q15 Earnings Exceed Wall Street Expectations
Dr Pepper Snapple Continues to Impress with its 2Q15 Earnings
Second-quarter results
Dr Pepper Snapple’s (DPS) adjusted earnings per share (or EPS) came in at $1.13 for the second quarter of 2015, which ended June 30, 2015. The company exceeded consensus Wall Street analysts’ estimate of $1.10. Dr Pepper Snapple reported its second quarter results on July 23. The company also topped Wall Street expectations in the first quarter.
Driving factors
The company’s adjusted EPS, which excludes the impact of one-time items, grew 6.6% from the comparable quarter of the previous year. Dr Pepper Snapple’s 2Q15 earnings were driven by higher revenue and lower expenses. The next part of this series will discuss the factors behind the company’s revenue growth.
The company’s selling, general, and administrative (SG&A) expenses reduced by 1.0% in 2Q15 on a year-over-year basis. Favorable foreign currency translation reduced expenses in 2Q15 by $9 million. Also, favorable changes in mark-to-market adjustments on commodities reduced SG&A expenses by $6 million on a year-over-year basis.
Overall, the company performed well in the first half of the year with the adjusted EPS increasing by 7.8% to $1.94 compared to the same period of the previous year. The earnings growth in the first half was driven by higher revenue and productivity initiatives.
How was the second quarter for peers?
Coca-Cola (KO) reported adjusted EPS of $0.63, beating analysts’ expectations of $0.60. Coca-Cola’s adjusted EPS were down 1.6% from the comparable quarter of the previous year, affected by lower revenue. PepsiCo’s (PEP) 2Q15 adjusted EPS came in at $1.32 per share, ahead of the consensus Wall Street estimate of $1.24. The company’s adjusted earnings were unchanged compared to the corresponding quarter of the previous year.
Coca-Cola, PepsiCo, and Dr Pepper Snapple together account for 1.7% of the portfolio holdings in the SPDR S&P 500 ETF (SPY) and 14.4% of the Consumer Staples Select Sector SPDR Fund (XLP).
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