American soft drinks giant Dr Pepper Snapple Group raised its full-year earnings outlook today, after better-than-expected third quarter results that showed a nine per cent rise in core earnings.
The NYSE-listed firm now expects full-year core earnings per share to be in the $3.92 (£2.55) to $3.98 range, up from an earlier forecast of $3.85 to $3.93.
Shares in the company jumped on the news and were trading over four per cent higher this afternoon.
Third-quarter earnings beat analysts' expectations and rose to $1.05 per share, or $202m, up nine per cent from $188m, or $0.96 per share, the previous year. Sales rose three per cent over the period to $1.63bn.
The company, which is a market leader in the US, reported a three per cent increase in sales volumes over the quarter, with particularly strong growth from its water and Clamato brands. Schweppes grew by 11 per cent and Dr Pepper was flat.
“We posted yet another quarter of solid top-line and bottom-line results, with both our carbonated soft drinks (CSD) and non-carbonated beverage portfolios performing well,” said president and chief executive Larry Young.
“We gained both dollar and volume share in the CSD and shelf-stable juice categories in Nielsen measured markets, and we’re seeing financial benefits from our marketing investments and innovation. Rapid continuous improvement continues to underpin how we operate on a daily basis, and we have a long runway of further improvement opportunities.”