NEWS: Dr Pepper Snapple Group said Wednesday its third-quarter net income rose 16 percent but revenue missed expectations as the company faces a decline in demand for carbonated soft drinks.
DETAILS: The company, which makes 7Up, Sunkist, Mott's, namesake beverages and other drinks, said bottles per case declined 1 percent for Dr Pepper as carbonated soft drinks continue to decline in popularity as consumers choose healthier options. A high-single-digit percentage increase in Canada Dry was offset by declines in 7Up and Sunkist.
NUMBERS: Net income rose 16 percent to $207 million, or $1.01 per share. That compares with $179 million, or 84 cents per share, a year ago. Excluding one-time items, earnings amounted to 88 cents per share. Analysts expected 83 cents per share. Revenue edged up about 1 percent to $1.54 billion from $1.53 billion. Analysts expected $1.56 billion.
FUTURE: The company reaffirmed guidance of $3.04 to $3.12 per share for the year. Analysts expect $3.07 per share. However it now expects revenue to be flat compared with prior guidance of a 3 percent rise. That implies revenue of $6 billion, while analysts expect $6.07 billion.
STOCK: Shares rose $1.26, or 2.8 percent, to $46.63 in midday trading Wednesday. Its shares are still 7 percent below their 52-week peak of $50.37 in mid-May.