Dr Pepper Snapple (DPS) Q2 Earnings Lag, Sales Top Estimates

Net cash provided by operating activities totaled $410 million in the first half of 2017, down 50.8% year over year.

Free cash flow came in at $81 million as of Jun 30, 2017, up 2.5%.

The company returned $381 million to shareholders in the form of stock repurchases ($177 million) and dividends ($204 million).

2017 Outlook

Dr Pepper Snapple continues to expect core earnings per share in the range of $4.56 to $4.66. Currency headwinds are expected to hurt 2017 core EPS by 4 cents, compared to 7 cents expected earlier.

The company expects net sales growth of 4.5%, more than 4% expected earlier. The Bai takeover is still expected to add approximately 2% to growth.

Organic volume is expected to witness just over 1% growth, while total volume growth will likely be around 2% (including the Bai buyout).

Capital expenditure is projected at about 3% of net sales. The company plans to repurchase $450 million to $500 million worth of shares this year.

Zacks Rank

Dr Pepper Snapple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases in Consumer Staples Sector

Mondelez International, Inc. (MDLZ - Free Report) is slated to report second-quarter numbers on Aug 2.

The Kraft Heinz Company (KHC - Free Report) and B&G Foods Inc. (BGS - Free Report) are scheduled to report second-quarter results on Aug 3.

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