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