Dr. Pepper Snapple 3Q Earnings Down On Expenses
PLANO, (AP) – Dr. Pepper Snapple Group Inc.’s earnings fell 5 percent in the third quarter, pinched by strike-related costs and higher expenses.
But revenue and sales volume edged higher, and the beverage maker raised its full-year earnings guidance.
Net income for the three months ended Sept. 30 dropped to $144 million, or 60 cents per share, from $151 million, or 59 cents per share, in the prior-year period. The Plano-based company had fewer shares outstanding in the latest quarter.
Strike-related costs of 4 cents per share weighed down the current quarter’s results. Removing these costs, earnings were 64 cents per share. Analysts forecast earnings of 60 cents per share. The estimates of analysts surveyed by Thomson Reuters typically omit one-time items.
Selling, general and administrative expenses rose to $564 million from $547 million.
Revenue edged up 2 percent to $1.46 billion from $1.43 billion as sales volume climbed 1 percent. The results were also helped by revenue recognized under PepsiCo Inc. licensing deals.
Wall Street expected $1.47 billion in revenue.
Dr. Pepper Snapple completed its licensing deals with PepsiCo in February. As part of the deals, PepsiCo distributes Dr. Pepper, Crush and Schweppes in U.S. territories where the brands were previously distributed by bottlers Pepsi Bottling Group Inc. and PepsiAmericas Inc. PepsiCo bought the two bottlers for $7.8 billion.
Dr. Pepper Snapple also has a licensing deal in place with Coca-Cola Co.
Dr. Pepper Snapple said Wednesday that it expects 2010 adjusted earnings in a range of $2.35 to $2.43 per share. Its prior forecast called for adjusted earnings of $2.34 to $2.42 per share.
Analysts predict earnings of $2.37 per share.
Dr. Pepper Snapple has more than 50 brands, including Mott’s, Hawaiian Punch, Snapple, Clamato and Dr. Pepper.
In pre-market trading Wednesday, Dr Pepper shares were down 24 cents at $35.45.
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