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 single-cup coffee-brewing expert Green Mountain Coffee Roasters
So what: Since we're right smack in the middle of earnings season, it should be no surprise to hear that Green Mountain's brew-tastic stock performance today was on the back of a well-received earnings report. On an absolute basis, the results looked very impressive, with sales for the December quarter more than doubling from the prior year to $1.16 billion and non-GAAP earnings per share soaring from $0.18 to $0.60. Even better, both tallies topped Wall Street predictions, which had the company earning just $0.36 per share on $1.06 billion in sales.
Now what: What's ahead for Green Mountain? Well, I can tell you this much: There is no doubt room for some "I told ya so's" from Green Mountain bulls right now. The chorus of naysayers had grown loud before this release, and many bears were claiming that an influx of competition was going to kneecap this coffee-pod potentate. As the numbers clearly show, this couldn't have been further from the truth in the December quarter.
If there was an itty-bitty hitch in the celebratory release -- a hitch, mind you, that most investors appear to not be too worried about -- it's that even with the blowout earnings for its fiscal first quarter, the company simply reaffirmed its prior guidance for the full fiscal year, which ends in September. This is a bit of a head-scratcher, but it could simply mean that management wants to leave itself some room to continue to give investors more than they expected.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.