Why Keurig Green Mountain Stock Heated Up Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Keurig Green Mountain  (NASDAQ: GMCR  ) were pleasing investors today, climbing as much as 17%, and finishing up 13% after a strong second-quarter earnings report. 

So what: The maker of the single-cup Keurig coffee-brewer sped past estimates as sales improved 10%, to $1.1 billion, against analyst expectations of $1.04 billion. Adjusted earnings, meanwhile, jumped from $0.93 to $1.08 a share, well ahead of the consensus at $0.94. CEO Brian Kelley said the quarter demonstrates "the continued opportunity to grow our Keurig system in North America in a very competitive environment," as Keurig has consistently beat earnings estimates in the last year. Sales of both portion packs and brewer systems increased steadily in the quarter, a further sign of Keurig's staying power. 

Now what: Two years after the market wrote off Keurig Green Mountain following the expiration of several patents, the company continues to prove its ability to keep growing. The stock soared earlier this year after the coffee maker announced a partnership with Coca-Cola to sell Coke beverages in the new Keurig Cold system, which is due out next year. Whether the Keurig Cold will be widely adopted remains a mystery, but shares should trade at a premium until it hits the market, as the new brewing system has the potential to be a game changer. 

Keurig Green Mountain was a multi-bagger. Will this stock be your next one?
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2950045, ~/Articles/ArticleHandler.aspx, 8/31/2015 10:02:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 46 minutes ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 3:59 PM
GMCR $56.60 Up +2.49 +4.60%
Keurig Green Mount… CAPS Rating: **