NEW YORK (TheStreet) -- Shares of Dr Pepper Snapple Group (DPS) are falling 0.41% to $97.62 this afternoon ahead of the company's 2016 second quarter earnings report, due out tomorrow before the market open.
Analysts are looking for the company to report earnings of $1.20 per share on revenue of $1.68 billion.
For the 2015 second quarter, Dr Pepper Snapple Group reported earnings per diluted share of $1.14 and revenue of $1.66 billion.
Companies in the carbonated soft drinks market are facing pressure as consumer preferences shift toward healthier beverage options.
A rising trend in soda taxes is also expected to hurt the company and its market in general. Philadelphia's mayor announced the first U.S. city soda tax of 1.5 cents per ounce on sugary beverages in June 2016. The tax goes into effect next year, Yahoo Finance reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.
You can view the full analysis from the report here: DPS