Earnings per share for the beverage company were 54 cents compared to the Zacks Consensus Estimate of 49 cents.

Net sales, however, fell 4%. The company said it was too early to see the economic recovery translate into higher beverage sales. Liquid refreshment beverage trends remained negative in the quarter.

2009 Guidance

Dr. Pepper Snapple forecasts sales to be in the range of negative 3% to 4%. Earnings per share are expected to be between $1.92 and $1.96 per share.

The current 2009 Zacks Consensus Estimate calls for $1.95 per share.

Value Fundamentals

Dr. Pepper Snapple is a Zacks #2 Rank (buy) stock. It still has attractive value characteristics. It is trading with a forward P/E of 13.5. The company's price-to-book ratio is 2.31. Dr. Pepper Snapple also has a stellar 1-year return on equity (ROE) of 16.1%.

Read the June 11 article.

Update to Previous Value Zacks Rank Buy Stocks

The Andersons, Inc. (ANDE) is scheduled to report third quarter earnings after the bell on Nov 4. Despite a slowdown in the agriculture sector analysts are bullish on the quarter and expect 2009 year over year earnings growth of 23.80%. Read the full article.

Travelers Companies Inc. (TRV) recently raised full year guidance as it surprised on estimates for the third time in the last 4 quarters. The company is trading with a forward P/E of just 8.9. Read the full article.

Harbin Electric, Inc. (HRBN) is growing quickly as it takes full advantage of the Chinese stimulus plan. Harbin has a PEG ratio of just 0.78. Read the full article.

Steve Madden Limited (SHOO) is hot. The company posted record sales in the third quarter and has raised 2009 earnings guidance each of the last 3 quarters. SHOO is attractively valued, trading at 14.2x forward earnings. Read the full article.

Zacks Investment Research

Chicago, IL – October 29, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Norfolk Southern Corp. (NSC), Burlington Northern Santa Fe Corp. (BNI), MeadWestvaco Corporation (MWV), International Paper Company (IP) and Weyerhaeuser Company (WY).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s AnalystBlog:

Norfolk Southern Heads North

Norfolk Southern Corp.’s (NSC) third-quarter earnings per share stood at 81 cents, compared to a profit of $1.30 in the year-ago period. The fall in earnings was due to lower volume on the back of subdued demand for shipped goods. However, EPS results were ahead of the Zacks Consensus Estimate of 79 cents per share.

Operating revenues fell 29% to $2.1 billion, driven by a 35% drop in coal revenues and a 31% drop in intermodal revenue along with lower fuel surcharge recovery.

Operating profit came in at $562 million, driven by a 20% reduction in volume but partly offset by a 25% reduction in operating expenses. Operating ratio stood at 72.8%, up 370 basis points year over year.

Total volume was 1.5 million units, down 20% year over year. However, traffic volumes stabilized during the quarter, as witnessed by an 8% increase sequentially.

For the fourth quarter, domestic intermodal volumes are expected to be flat to positive. However, volumes are expected to resume growth for 2010 as highway conversions improve and economic activity picks up. International volumes are however expected to be down until consumer demand picks up.

Though Norfolk’s revenues as well as volumes have remained under pressure, the company is continuing cost control measures to retain profitability. Going forward, an improvement in sequential volumes and revenues is expected as economic and project related activity gather strength.

Peer Burlington Northern Santa Fe Corp. (BNI), last week, reported earnings of $1.36 per share. Similar to Norfolk, its results were also negatively affected by a decline in freight volumes, partially offset by reduced costs.

MeadWestvaco Beats Handily

MeadWestvaco Corporation (MWV) reported solid profit improvement across all of its businesses for the third quarter of 2009. Pre-tax earnings from the company’s business segments increased 43% to $204 million from $143 million in the third quarter of 2008.

Third quarter 2009 net income from continuing operations was $128 million, or 74 cents per share, compared to $46 million, or 26 cents per share, in the third quarter of 2008. The results for the third quarter of 2009 include after-tax items totaling $42 million, or 24 cents per share. After adjusting for special items, earnings from continuing operations amounted to 50 cents per share, higher than the Zacks Consensus Estimate.

In the Packaging Resources business, profit from continuing operations increased 16% to $74 million in the third quarter of 2009 compared to $64 million in the third quarter of 2008. Sales were $627 million in the third quarter of 2009 compared to $730 million in the third quarter of 2008. This segment improved product pricing and mix, generated strong operational productivity, and benefited from lower input costs compared to last year.

In the Consumer Solutions business, profit more than doubled to $35 million in the third quarter of 2009 compared to $14 million in the third quarter of 2008. Sales were $585 million in the third quarter of 2009 compared to $653 million in the third quarter of 2008. This segment continued to perform well in key global packaging markets, including beverage, healthcare, and home and garden.

In the Consumer & Office Products business, profit increased 34% to $51 million in the third quarter of 2009 compared to $38 million in the third quarter of 2008. Sales in the third quarter of 2009 were $303 million compared to $312 million in the third quarter of 2008. The segment had a solid back-to-school season in North America, with strong positioning and sell-through of proprietary, branded products at leading retailers.

In the Specialty Chemicals business, profit increased 50% to $24 million in the third quarter of 2009 compared to $16 million in the third quarter of 2008.

During the third quarter of 2009, the company completed a tender offer to repurchase $314 million of its 6.85% notes due in 2012. The repurchase was funded by net proceeds pursuant to the issuance of $250 million of 7.375% notes due in 2019, as well as from cash-on-hand. Upon settlement of the tender offer, the company reduced its overall long-term debt by $64 million, and reduced its outstanding 2012 notes from $633 million to $319 million.

Cash flow provided by continuing operations exceeded $540 million in the first three quarters of 2009 compared to $182 million in the first three quarters of 2008.

Capital spending from continuing operations was $140 million in the first three quarters of 2009 compared to $207 million in the first three quarters of 2008.

MeadWestvaco Corporation provides packaging solutions to many of the world’s renowned brands in the healthcare, beauty and personal care, food, beverage, media and entertainment, home and garden, tobacco, and commercial print industries. With 20,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. Major competitors include International Paper Company (IP) and Weyerhaeuser Company (WY).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com