Green Mountain Coffee Roasters
The 10-second takeaway
For the quarter ended March 24 (Q2), Green Mountain Coffee Roasters missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins contracted, and net margins expanded.
Green Mountain Coffee Roasters reported revenue of $885.1 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $971.6 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $647.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The eight earnings estimates compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.58 for Q2 were 32% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 210 basis points worse than the prior-year quarter. Operating margin was 16.9%, 190 basis points worse than the prior-year quarter. Net margin was 10.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $872.0 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $3.89 billion. The average EPS estimate is $2.27.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 977 members out of 1,490 rating the stock outperform, and 513 members rating it underperform. Among 410 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 268 give Green Mountain Coffee Roasters a green thumbs-up, and 142 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Green Mountain Coffee Roasters is outperform, with an average price target of $86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.