Dr Pepper Snapple (DPS) recorded higher volume growth in noncarbonated beverages in each of the first three quarters of fiscal 2015 compared to carbonated soft drinks.
Dr Pepper Snapple’s (DPS) Rapid Continuous Improvement productivity program has helped the company improve its operating margin.
In this preview series on Dr Pepper Snapple’s 4Q15 results, we’ll discuss the company’s earnings expectations, margin expansion, stock price movement, and valuation.
Expedia (EXPE) currently trades at a forward PE (price-to-earnings) multiple of 16.79x. This is significantly higher than its average valuation of 12.61x since November 2008.
Expedia’s cash dividend ratio stood at a strong 9x at the end of 3Q15, indicating its ability to sustain dividend payouts. The ratio is calculated as cash flows over dividends paid.
Total debt on EXPE’s balance sheet has increased from $1,249 million in 2013 to $2,475 million at the end of 3Q15. As a result, EXPE’s leverage ratios have also increased.
Expedia’s EBITDA margins are expected to increase to 19% in 2016 and then rise to 21% in 2017. As a result, EBITDA growth is expected to increase to 42% and 27% in 2016 and 2017, respectively.
For the last year, Expedia’s gross bookings increased 28% after increasing 16% for the two years before that. For the first nine months of 2015, gross bookings have increased 20%.
For 4Q15, analysts are estimating Expedia’s (EXPE) revenues to increase 26%. That’s much higher than the growth seen in the last three quarters, which was led by strong domestic demand.
Of the 28 analysts tracking Expedia (EXPE), 57.1%, or 16 analysts, have given the company a “buy” recommendation. About 42.9%, or 12 analysts, have given it a “hold” rating.
Of the 23 analysts tracking FirstEnergy, 14 have given it a “hold” recommendation, while eight have given it a “buy.” Only one analyst has given FirstEnergy a “sell” recommendation.
FirstEnergy is trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 8x, as of February 8, 2016.
Warmer-than-expected weather during 4Q15 may have a negative impact on FirstEnergy Corporation’s earnings.
Wall Street analysts estimate FirstEnergy will report EPS (earnings per share) of $0.57 for 4Q15. In 4Q14, FirstEnergy reported EPS of $0.80.
Analysts estimate Kellogg’s fiscal 4Q15 EPS to come in at $0.75, a fall of 10.7% year-over-year.
Approximately 48% of analysts tracking FMC Technologies rate it a “buy” or some equivalent. Approximately 52% rate the company a “hold” or an equivalent, and none recommended a “sell.”
FMC Technologies’ (FTI) share price was at its one-year high of ~$44 by the end of April 2015. Since then, it has trended down.
Since 3Q14, FMC Technologies’ (FTI) revenues have decreased 22% through 3Q15. Lower North America drilling activity decreased FTI’s measurement solutions business, and a strengthening US dollar affected FTI’s revenues negatively during this period.
In 4Q15, analysts expect to see $0.48 adjusted net earnings per share for FMC Technologies (FTI). This means that Wall Street analysts expect FTI’s 4Q15 earnings to decrease by 21% from the 3Q15 adjusted EPS of $0.61.
According to its latest 10-Q filing, Peabody Energy has $6.3 billion of debt as of September 30, 2015. Almost a fourth of this debt is due in November 2016.