We have maintained a Neutral rating on Dr Pepper Snapple Group Inc. (DPS ) following appraisal of first quarter 2012 results. Dr Pepper Snapple reported first quarter 2012 adjusted earnings (excluding mark to market gains) of 46 cents per share, down 8% from the year-ago earnings of 50 cents per share. Earnings plummeted as top-line growth was offset by a decline in margins. The company's quarterly earnings also missed the Zacks Consensus Estimate of 48 cents per share. During the quarter, Dr Pepper's net sales grew nominally 2% year over year to $1.36 billion as benefit from price/mix was offset by volume declines. Net sales were in line with the Zacks Consensus Estimate of $1.36 billion. Gross margins declined 210 basis points in the quarter primarily due to higher packaging and ingredient costs.