Green Mountain Coffee Roasters Earnings Preview

Investors are on the edge of their seats, hoping that Green Mountain Coffee Roasters (Nasdaq: GMCR  ) will top analyst expectations for the fourth consecutive quarter. The company will unveil its latest earnings on Wednesday, July 27. Green Mountain Coffee Roasters operates in the specialty coffee industry in the United States and internationally. It sells approximately 200 whole bean and ground coffee selections, cocoa, teas, and coffees.

What analysts say:

• Buy, sell, or hold?: Analysts are bullish on this stock, with eight analysts rating it as a buy and only one rating it as a sell. They like Green Mountain Coffee Roasters better than competitor Sara Lee overall. Analysts haven't adjusted their rating of Green Mountain Coffee Roasters for the past three months.
• Revenue Forecasts: On average, analysts predict $608.4 million in revenue this quarter. That would represent a rise of 95.3% from the year-ago quarter.
• Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.36 per share. Estimates range from $0.33 to $0.40.

What our community says:
The majority of CAPS All-Stars see GMCR as a good bet, with 64.9% assigning it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars, as 61.4% give it an "outperform" rating. Fools have embraced Green Mountain Coffee Roasters and haven't been shy with their opinions lately, logging 659 posts in the past 30 days. However, Green Mountain Coffee Roasters' bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Green Mountain Coffee Roasters' profit has risen year over year by an average of 44.7%. The company increased its gross margin by 4.1 percentage points in the last quarter. Revenue rose 99.3% while cost of sales rose 87.2% to $404.8 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q2	Q1	Q4	Q3
Gross Margin	37.5%	25.1%	28.5%	35.2%
Operating Margin	18.5%	4%	9.8%	12.3%
Net Margin	10.1%	0.4%	6.4%	6%

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