Dr Pepper Snapple cuts FY17 EPS view to $4.53-$4.63 from $4.56-$4.66
FY17 consensus $4.63. In a regulatory filing, the company said, "Dr Pepper Snapple Group is updating its 2017 earnings per share guidance for the anticipated effects of a default by a supplier of resin to our operations in Mexico. This default has occurred at their resin plant, which was unaffected by either of Hurricanes Harvey or Irma. The Company has procured additional sources of resin needed for its operations and expects to write-off certain prepaid resin inventory. We anticipate that the aforementioned default will negatively impact 2017 operating income by approximately $7 to $9 million, or $0.03 per share, mostly in the third quarter. As a consequence of the aforementioned matter, we are now updating our 2017 EPS guidance range to $4.53 - $4.63. However, the Company's operations have also recently been impacted by hurricanes affecting south Texas, the southeastern U.S., and the Caribbean and additionally the earthquake occurring in Mexico on September 19. We are unable to presently determine the effects of these events on the Company's 2017 operating results or our currently revised EPS guidance range."