Green Mountain Soars on Huge Earnings Beat

Michael Teague  |

Shares for Green Mountain Coffee Roasters (GMCR) soared over 15 percent in late trading on Wednesday to $68.81 per share, and the activity causing trading to be halted at one point, as the company posted a huge beat on earnings and raised its guidance for the current quarter and full year for the second time.

For the first quarter of 2013, Green Mountain’s profits were $132.4 million, or $0.93 per share (excluding items) on revenue of $1 billion, versus the prior year period during which the company netted $93 million, or $0.58 per share on revenue of $885 million. Not only was this a vast improvement on 2012, but the company flattened consensus earnings-per-share expectations of $0.74.

Furthermore, the company upped its guidance for the current quarter to $0.71 to $0.78 per share, and for the full year to $3.05 to $3.15 per share, after previously raising the forecast to $2.72 to $2.82 per share.

Green Mountain’s 2013 good news came on the same day the company announced the expansion of its partnership with Starbucks Coffee (SBUX) to produce the “K-Cups” for the company’s coffee and Tazo tea brands for the next five years. Major name-brands like Teavana and Seattle’s Best will also be available for Green Mountain’s Kuerig single-cup brewing machines.

The company’s shares ended regular trading up a respectable 1.57 percent to close at $59.48 per share. Meanwhile, shares for Starbucks got a slight afterhours bump of 0.71 percent to $62.85.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
SBUX Starbucks Corporation 88.67 0.46 0.52 6,718,361 Trade
HAIN The Hain Celestial Group Inc. 24.97 -0.83 -3.20 412,376 Trade

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