Shares of Dr Pepper Snapple (DPS) were sliding 2.81% to $90.86 in pre-market trading on Tuesday after the company reported fourth-quarter earnings that fell short of analysts' expectations and issued a downbeat full-year forecast.
Before the market open, the Plano, TX-based beverage company posted adjusted earnings of $1.04 per share, missing Wall Street's projections of $1.06 per share. Revenue for the period was $1.58 billion, slightly above the FactSet consensus of $1.57 billion.
"In a continuously competitive environment, we remained focused on our integrated communication and execution strategies and unlocked growth across our priority brands," CEO Larry Young said in a statement.
For fiscal 2017, Dr Pepper sees earnings per share between $4.44 and $4.54, below analysts' estimates of $4.74 per share. Full-year net sales are expected to grow about 4.5%.
"We recently completed our acquisition of Bai, which will strengthen our priority brand portfolio and bring exciting innovation opportunities to the company," Young added.
Last year, the company bought Bai Brands, which makes flavored sparkling and still water, for $1.7 billion in cash.
During the fourth quarter, the company's water category volume jumped 8% on strong growth in Bai, Core Hydration and Fiji brands.
Bottler case sales volume was flat in the period, while carbonated soft drinks increased 1% and non-carbonated beverages fell 1%. Volume in North America was flat, while volume in Mexico and the Caribbean rose 5%.
In carbonated soft drinks, Squirt volume increased 8% driven by strong performance in Mexico. U.S. Schweppes rose 7% on distribution gains in sparkling water and growth in the ginger ale category. Dr Pepper volume fell 1%.
Snapple volume fell 3% and Hawaiian Punch dropped 5% due to "category headwinds" and higher pricing on single-serve packages. Mott's volume decreased 2% as growth in sauce was more than offset by declines in juices.