Green Mountain Coffee Roasters
The 10-second takeaway
For the quarter ended March 30 (Q2), Green Mountain Coffee Roasters missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Green Mountain Coffee Roasters notched revenue of $1.00 billion. The 11 analysts polled by S&P Capital IQ anticipated revenue of $1.02 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $885.1 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 $0.93. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. Non-GAAP EPS of $0.93 for Q2 were 58% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.87 for Q2 were 50% higher than the prior-year quarter's $0.58 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 41.3%, 590 basis points better than the prior-year quarter. Operating margin was 21.1%, 420 basis points better than the prior-year quarter. Net margin was 13.2%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $4.45 billion. The average EPS estimate is $2.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,077 members out of 1,500 rating the stock outperform, and 423 members rating it underperform. Among 374 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 274 give Green Mountain Coffee Roasters a green thumbs-up, and 100 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 $52.18.
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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.