Green Mountain Coffee Roasters
The 10-second takeaway
For the quarter ended June 23 (Q3), Green Mountain Coffee Roasters met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins contracted, net margins improved.
Green Mountain Coffee Roasters reported revenue of $869.2 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $873.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $717.2 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 $0.47. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.46 for Q3 were 24% higher than the prior-year quarter's $0.37 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 34.9%, 190 basis points worse than the prior-year quarter. Operating margin was 14.9%, 170 basis points worse than the prior-year quarter. Net margin was 8.4%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $938.8 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $3.85 billion. The average EPS estimate is $2.31.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,093 members out of 1,535 rating the stock outperform, and 442 members rating it underperform. Among 352 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 228 give Green Mountain Coffee Roasters a green thumbs-up, and 124 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 $46.78.
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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. The Motley Fool has the following options: long DEC 2012 $16.00 puts on Green Mountain Coffee Roasters and short DEC 2012 $21.00 calls on Green Mountain Coffee Roasters. Motley Fool newsletter services recommend 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.