Dr Pepper Snapple Group Inc. (DPS) will launch the Snapple Papaya Mango Tea. The latest Snapple tea is a blend of green and black teas, as well as flavors of papaya and mango inspired by a region in India.
The company joined with CBS to promote its brand through advertising it during episodes of The Amazing Race, a television show aired on CBS.
Dr Pepper recorded sales growth of 1.3% year over year in 2010. We expect new product offerings will help it to register higher sales as well as widen its product offerings.
Dr Pepper reported fourth-quarter 2010 adjusted earnings of 67 cents per share, compared with 44 cents in the year-ago period. Quarterly earnings also topped the Zacks Consensus Estimate of 64 cents. The company guided its full-year 2011 adjusted earnings in the range of $2.70 to $2.78 per share on a 3% to 5% growth in net sales.
The Zacks Consensus Estimate for first-quarter 2011 is 47 cents per share. For fiscal years 2011 and 2012, the Zacks Consensus Estimates are, respectively, $2.75 per share and $2.99 per share.
We maintain our Neutral recommendation on Dr Pepper. The quantitative Zacks #3 Rank (short-term Neutral rating) for the company indicates no clear directional pressure on the shares over the near term.
Headquartered in Plano, Texas, Dr Pepper Snapple Group Inc. manufactures and distributes (as well as licenses) concentrates and syrups to independently owned bottlers and canners. The company mainly operates its business in the United States, Canada and Mexico and also distributes its products in the Caribbean. It competes with The Coca-Cola Company (KO) and Pepsico, Inc. (PEP).
DR PEPPER SNAPL (DPS): Free Stock Analysis Report
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PEPSICO INC (PEP): Free Stock Analysis Report
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