Green Mountain Coffee Roasters
The 10-second takeaway
For the quarter ended Sep. 29 (Q4), Green Mountain Coffee Roasters beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins dropped.
Green Mountain Coffee Roasters logged revenue of $946.7 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $902.3 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $711.9 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 $0.64. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS of $0.58 for Q4 were 23% higher than the prior-year quarter's $0.47 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 33.4%, 230 basis points worse than the prior-year quarter. Operating margin was 15.2%, 20 basis points better than the prior-year quarter. Net margin was 9.7%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.27 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $2.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,063 members out of 1,502 rating the stock outperform, and 439 members rating it underperform. Among 377 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 252 give Green Mountain Coffee Roasters a green thumbs-up, and 125 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 $36.60.
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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 no positions in the stocks mentioned above. 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.