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Dr Pepper Tackles Higher Costs With Price Hikes

PLANO, Texas ( TheStreet) -- Dr Pepper Snapple (DPS - Get Report) beat profit expectations by a penny as sales increased, though top-line revenue missed analysts' consensus and the company said it would raise prices to keep up with higher costs and a tough consumer spending environment.

Dr Pepper Snapple posted quarterly earnings per share of 77 cents, up from 74 cents earned in the year-earlier period, beating expectations by a penny.

Net revenue increased 3.9% to $1.58 billion from $1.52 billion, but the line item missed analysts' call for sales of $1.59 billion.

Dr Pepper Snapple said it would raise prices and push for greater productivity in an effort to cover higher input costs. It expects its cost of goods sold (COGS) to grow between 7% and 9% in fiscal 2011.

Dr Pepper Snapple forecast full-year EPS in the $2.70 to $2.78 range, with net sales to increase 3% to 5% to a range of $1.45 billion to $1.48 billion. That compares with analysts' expectations for 2011 EPS of $2.75 on revenue of $5.92 billion.

Dr Pepper Snapple shares were 0.2% higher in premarket trading Wednesday after closing 0.2% lower at $39.64 in Tuesday's session.

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