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Dr Pepper Snapple Group Appoints José Gutiérrez to Board of Directors

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Sep. 27 2016, Updated 8:06 a.m. ET

Price movement

Dr Pepper Snapple Group (DPS) rose 0.95% to close at $91.61 per share during the third week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.95%, -1.4%, and 0.0%, respectively, as of September 23, 2016.

DPS is trading 0.28% below its 20-day moving average, 3.0% below its 50-day moving average, and 0.06% below its 200-day moving average.

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Related ETFs and peers

The Consumer Staples Select Sector SPDR ETF (XLP) invests 0.93% of its holdings in DPS. The ETF tracks a market-cap-weighted index of consumer staples stocks drawn from the S&P 500. The YTD price movement of XLP was 7.5% on September 23, 2016.

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.67% of its holdings in Dr Pepper Snapple. The ETF tracks a market-cap-weighted index of stocks in the US consumer staples sector.

The market caps of DPS’s competitors are as follows:

  • Coca-Cola (KO): $185.4 billion
  • Kraft Heinz (KHC): $108.4 billion
  • Monster Beverage (MNST): $28.3 billion

Latest news on DPS

José Gutiérrez has joined Dr Pepper Snapple Group’s board of directors.

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Performance of Dr Pepper Snapple in 2Q16

Dr Pepper Snapple reported 2Q16 net sales of $1.7 billion, a rise of 2.4% from $1.66 billion in 2Q15. Sales of beverage concentrates and packaged beverages rose 3.6% and 3.1%, respectively. Sales of its Latin America beverages fell 6.6% from 2Q15 to 2Q16. The company’s gross profit margin and income from operations rose 2.0% and 11.7%, respectively.

Its net income and EPS (earnings per share) rose to $260.0 million and $1.39, respectively, in 2Q16, compared to $220.0 million and $1.14, respectively, in 2Q15. It reported adjusted EPS of $1.25 in 2Q16, a rise of 10.6% over 2Q15.

DPS’s cash and cash equivalents fell 73.1%, and its inventories rose 12.9% from 4Q15 to 2Q16. Its current ratio and debt-to-equity ratio fell to 1.13x and 2.9x, respectively, in 2Q16, compared to 1.15x and 3.1x, respectively, in 4Q15.

Projections

Dr Pepper Snapple Group (DPS) has made the following projections for fiscal 2016:

  • net sales growth of ~2%
  • core EPS of $4.27–$4.35
  • foreign currency and transactions to negatively impact net sales by ~1% and core EPS growth of ~3%
  • packaging and ingredient costs to cause COGS (cost of goods sold) to fall ~1% on a constant volume-mix basis
  • core tax rate of ~35.5%
  • capital spending of ~3% of net sales
  • repurchase of $650 million–$700 million of its common stock

Next, we’ll look at Tenneco (TEN).

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