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Green Mountain Coffee (GMCR) Jumps After Upbeat 4Q Results, Forecast

 November 27, 2012 04:20 PM

(By Balaseshan) Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) reported a 22 percent increase in quarterly earnings on strong sales. Results exceeded market expectations, and the specialty coffee maker guided the first quarter above the Street's view, sending its shares up 24.72 percent higher in the aftermarket.

Earnings for the fourth quarter were $91.9 million, or $0.58 per share, up from $75.4 million, or $0.47 per share, last year. Adjusted earnings per share (EPS) rose to $0.64 from $0.47.

Revenue jumped 33 percent to $946.7 million, on strong sales from Keurig Single Cup Brewers, single serve packs, and Keurig-related accessories.

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Analysts, on average, polled by Thomson Reuters expected a profit of $0.48 per share on revenue of $902.23 million for the fourth quarter.

Sales from single serve packs climbed 47 percent to $700.2 million, driven by a 50 percentage point increase in sales volume. Brewers and accessories sales grew 30 percent to $150.1 million, while other products and royalties declined 21 percent to $96.4 million.

GMCR sold 1.8 million Keurig Single Cup Brewers during the fourth quarter of fiscal year 2012. This brewer shipment number does not account for consumer returns.

Gross margin decreased to 33.4 percent from 35.7 percent, due to demand-related investments in fiscal 2012, including the introduction of the Vue brewing system. This resulted in higher labor and overhead manufacturing costs associated with the ramp-up in its manufacturing base.

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Looking ahead into the first quarter, the company expects adjusted EPS of $0.62 to $0.67 and sales growth of 14 percent to 18 percent, while the Street predicts EPS of $0.59 on revenue growth of 11.70 percent.

For fiscal 2013, the company raised its adjusted EPS guidance to range of $2.64 to $2.74 from previous forecast of $2.55 to $2.65. GMCR reiterated its full year sales growth outlook of 15 percent to 20 percent. Street analysts predict EPS of $2.51 on revenue growth 15 percent.

GMCR closed Tuesday's regular session up 1.15 percent at $28.94. The stock has been trading between $17.11 and $71.15 for the past 52 weeks.



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