Keurig Dr Pepper Inc (KDP)

[fuzzy]

8:05 am Dr Pepper Snapple beats by $0.16, reports revs in-line; raises FY14 EPS, reaffirms FY14 revs guidance (DPS) : Reports Q2 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.16 better than the Capital IQ Consensus Estimate of $0.90; revenues rose 1.2% year/year to $1.63 bln vs the $1.62 bln consensus.


•For the quarter, reported net sales increased 1% as a sales volume increase, favorable product and package mix and pricing were partially offset by higher discounts and 1 percentage point of unfavorable foreign currency.
Co issues guidance for FY14, raises EPS to $3.43-3.51 from $3.38-3.46 vs. $3.47 Capital IQ Consensus; reaffrims FY14 revs flat to +1% to $6.0-6.06 bln vs. $6.05 bln Capital IQ Consensus Estimate. The company continues to expect full-year reported net sales to be flat to up 1%. The company is raising its guidance and now expects Core EPS to be in the $3.43 to $3.51 range. Packaging and ingredient costs, including LIFO impacts, are expected to decrease COGS by 2% on a constant volume/mix basis. The company expects its core tax rate to be approximately 35.5%. The company continues to expect capital spending to be ~3% of net sales. The company expects to repurchase $375 million to $400 million of its common stock.