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 $ 1.12, or 2.47 percent, to $46.49 Wednesday. Its shares are still 7 percent below their 52-week peak of $50.37 in mid-May.