DPS: Dr Pepper Stock Surges on Lower Costs, Higher Profits

It also surpassed Wall Street revenue estimates

   

DPS: Dr Pepper Stock Surges on Lower Costs, Higher Profits

Shares of Dr Pepper Snapple Group (DPS) climbed sharply in Wednesday morning trading after DPS posted a better-than-expected first-quarter profit.

DrPepperTen 300x167 DPS: Dr Pepper Stock Surges on Lower Costs, Higher ProfitsDr Pepper stock rose almost 5% on news that DPS earned $155 million during the quarter, up from $106 million in the prior-year period. Adjusted EPS came in at 74 cents a share, far above the 59 cents that Wall Street had forecast, the Associated Press noted.

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DPS noted that declining ingredient costs coupled with enhancements in operational productivity had improved its operating profit.

Quarterly revenue of $1.4 billion also topped analysts’ estimates of $1.38 billion.

Volume sales of Dr Pepper soda sank 4% during the quarter, while Hawaiian Punch sales dropped 8%. By contrast, sales of Snapple and Clamato climbed 2% and 3%, respectively.

DPS stock closed at $52.39 a share on Tuesday.

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