Green Mountain Coffee (GMCR) Surges as Q1 Earnings Crush Estimates

February 1, 2012 4:53 PM EST
Shares of Green Mountain Coffee Roasters (NASDAQ: GMCR) are sharply higher after the close Wednesday following much better-than-expected earnings results in the all-important first quarter, which included the holiday season.

Net sales rose 102% to $1.158 billion, which easily beat the consensus of $1.06 billion. Sales of K-Cup® Packs rose 115% to $715.7 million in the quarter. Sales of Brewers and Accessories rose 76% to $330.4 million. Sales of Other Products and Royalties rose 111% to $112.1 million.

GMCR sold 4.0 million Keurig Single Cup Brewers during the quarter.

Non-GAAP earnings per share for the quarter rose 233% to $0.60 and beat the consensus of $0.24 by 67%.

Inventories were $606.7 million at December 24, 2011 compared to $269.1 million at December 25, 2010.

Accounts receivable increased 73% year-over-year to $412.5 million.

"North American consumers continue to embrace the convenience, choice and consistent experience provided by the Keurig® Single Cup Brewing system and, as evidenced by our strong holiday sales, are encouraging friends and family to do the same," said Lawrence J. Blanford, GMCR's president and CEO. "We believe our sales in the period were, in part, the result of our efforts to ensure strong in-stock positions on store shelves as well as due to growing awareness of the Keurig® brand which was aided by our nationwide advertising and strong in-store merchandising."

Looking to the current quarter, the company sees EPS of $0.60 to $0.65 per share, which fell below the consensus of $0.73. The company also sees net sales growth of 45% to 50%.

The Company reaffirmed its prior estimates for its fiscal year 2012, with total consolidated net sales growth of 60% to 65%. Fiscal year 2012 non-GAAP earnings per diluted share in a range of $2.55 to $2.65 per diluted share, versus the consensus of $2.56.

Shares of Green Mountain are up 12 percent after-hours to $60.16.

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