WASHINGTON (dpa-AFX) - Dr Pepper Snapple Group Inc. (DPS) on Thursday reported an increase in profit for the second quarter, despite some mediocre revenue growth and leveraged expenses. Earnings for the quarter trumped street estimates, as did revenues.
The Plano, Texas-based company's second-quarter profit increased to $220 million or $1.14 per share from $210 million or $1.06 per share a year ago.
Excluding items, core earnings for the quarter were $1.13 per share. On average, 19 analysts polled by Thomson Reuters expected earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.
Second-quarter sales inched up 1 percent to $1.66 billion from $1.63 billion last year. Analysts had a consensus revenue estimate of $1.65 billion for the quarter.
For the quarter, bottle case sales volume increased 1 percent with carbonated soft drinks increasing 1 percent and non-carbonated beverages up 3 percent. Dr Pepper Snapple continues to record increases in volume shipments of beverages, unlike its bigger peers, who are struggling with sales decline as consumers switch to health drinks.
Selling, general and administrative costs dropped to $586 million from $592 million a year ago.
Looking ahead to fiscal year 2015, the company raised core earnings guidance to a range of $3.85 to $3.93 per share from the prior outlook of $3.80 to $3.88 per share. The company now expect sales to be up just over 1 percent. Analysts currently expects earnings of $3.92 per share on revenue growth 1.70 percent for 2015.
DPS is currently trading at $77.42, down $1.30 or 1.65%, on the NYSE.
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