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It's Showtime for Green Mountain Coffee Roasters

By Seth Jayson - Updated Apr 10, 2017 at 12:27PM

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Checking expectations

Green Mountain Coffee Roasters (Nasdaq: GMCR) is expected to report Q2 earnings on May 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Green Mountain Coffee Roasters's revenues will expand 15.8% and EPS will grow 22.0%.

The average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.72.

Revenue details
Last quarter, Green Mountain Coffee Roasters booked revenue of $1.34 billion. GAAP reported sales were 16% higher than the prior-year quarter's $1.16 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.76. GAAP EPS of $0.70 for Q1 were 6.1% higher than the prior-year quarter's $0.66 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 31.3%, 220 basis points better than the prior-year quarter. Operating margin was 13.6%, 100 basis points better than the prior-year quarter. Net margin was 8.0%, 100 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.47 billion. The average EPS estimate is $2.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,076 members out of 1,497 rating the stock outperform, and 421 members rating it underperform. Among 368 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 270 give Green Mountain Coffee Roasters a green thumbs-up, and 98 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 $43.92.

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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 recommends 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.

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