Green Mountain Coffee Roasters Beats Estimates on Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Green Mountain Coffee Roasters (NAS: GMCR) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 24 (Q1), Green Mountain Coffee Roasters beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Green Mountain Coffee Roasters notched revenue of $1.16 billion. The 11 analysts polled by S&P Capital IQ foresaw net sales of $1.06 billion. Sales were much higher than the prior-year quarter's $575.0 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.55. The eight earnings estimates compiled by S&P Capital IQ averaged $0.34 per share on the same basis. GAAP EPS of $0.66 for Q1 were much higher than the prior-year quarter's $0.02 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.1%, 400 basis points better than the prior-year quarter. Operating margin was 12.6%, 710 basis points better than the prior-year quarter. Net margin was 9.0%, 860 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $4.24 billion. The average EPS estimate is $2.49.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 909 members out of 1,404 rating the stock outperform, and 495 members rating it underperform. Among 424 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 give Green Mountain Coffee Roasters a green thumbs-up, and 164 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.

At the time thisarticle was published 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 ofMotley 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 also 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement