Why Dr Pepper Snapple (DPS) Is Up Today

NEW YORK (TheStreet) -- Dr Pepper Snapple (DPS) was gaining 2.8% to $50.28 on Wednesday after its fourth-quarter earnings beat analysts' estimates by 13 cents a share.

The beverage company posted earnings of 97 cents a share for the fourth quarter, compared to the Capital IQ Consensus Estimate of 84 cents a share. Revenue fell 1.4% to $1.46 billion, in line with analysts' estimates of $1.47 billion.

Dr Pepper Snapple said a 4% sales volume decline and less favorable trade adjustments were offset in part by favorable mix and price.

For 2014, Dr Pepper Snapple said it expects earnings of between $3.38 and $3.46 a share. Analysts expect earnings of $3.26 a share for the year. The beverage company expects revenue of between $6 billion and $6.06 billion, compared to analysts' forecasts of $6.12 billion.

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TheStreet Ratings team rates DR PEPPER SNAPPLE GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:

"We rate DR PEPPER SNAPPLE GROUP INC (DPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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