What Will Happen to Dr Pepper Snapple’s Valuation after Its 2Q17 Results?
As of July 20, Dr Pepper Snapple (DPS) was trading at a 12-month forward PE ratio of 19.8x. Its valuation multiple has fallen 1.4% since its 1Q17 results.
As of July 20, Dr Pepper Snapple (DPS) has been given a “hold” recommendation by 14 of its 21 analysts (67%).
Dr Pepper Snapple (DPS) has surpassed the analysts’ earnings expectations in eight of the past nine quarters.
Dr Pepper Snapple’s (DPS) gross margin expanded in 1Q17, but its operating margin declined.
In 1Q17, Dr Pepper Snapple delivered sales of $1.5 billion, missing the consensus analysts’ sales estimate of $1.6 billion.
As of July 19, Coca-Cola stock was rated “hold” by 16 of 27 (59.0%) analysts covering the stock. The stock has been rated “buy” by ten analysts and “sell” by one.
As of July 19, Coca-Cola (KO) was trading at a 12-month forward PE (price-to-earnings) ratio of 23.7x.
Coca-Cola’s EPS (earnings per share) excluding one-time items have declined for eight consecutive quarters.
Coca-Cola has been focusing on improving margins to mitigate the impact of lower sales and weak volumes.
Coca-Cola has exceeded analysts’ revenue estimates for the past three consecutive quarters but has delivered lower revenue for eight straight quarters.
Soda giant Coca-Cola (KO) is scheduled to report its 2Q17 results on July 26. KO’s stock price has risen 8.1% on a YTD basis as of July 19.
Of the 19 analysts covering Hershey stock, 21.0% recommended a “buy,” 68.0% kept a “hold” recommendation, and 11.0% maintained a “sell” rating.
Hershey’s (HSY) 2Q17 margins are expected to benefit from its supply chain productivity and cost-cutting measures.
Analysts expect Hershey (HSY) to report sales of $1.7 billion in 2Q17, reflecting YoY (year-over-year) growth of 1.2%.
On an average, Wall Street analysts expect the company to post adjusted earnings per share of $0.90 per share in 2Q17, representing year-over-year growth of 6%.
Sprouts Farmers Market (SFM) is valued at a one-year forward price-to-earnings ratio (or PE) of 26.0x, which is close to the upper end of its 52-week PE range of 20.0x–27.0x.
On June 16, Oppenheimer raised SFM to “outperform” from “perform” after Amazon (AMZN) announced its acquisition of Whole Foods Market (WFM).
According to the latest data compiled by Thomson Reuters, 52% of the analysts recommend buying SFM.
On June 16, 2017, Amazon announced its intention to acquire Whole Foods Market for $13.4 billion. The deal bolstered Whole Foods Market’s stock price by 29%.
For fiscal 2017, Sprouts Farmers Market’s (SFM) management has predicted a slightly lower gross margin than in fiscal 2016.