Green Mountain Coffee Roasters (GMCR) Tops Q2 EPS by 20c, Boosts Outlook; Enters Expanded Deal with Starbucks

May 8, 2013 4:03 PM EDT Send to a Friend
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(Updated - May 8, 2013 4:11 PM EDT)

Green Mountain Coffee Roasters (NASDAQ: GMCR) reported Q2 EPS of $0.93, $0.20 better than the analyst estimate of $0.73. Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.02 billion.

Green Mountain Coffee Roasters sees FY2013 EPS of $3.05-3.15, versus the consensus of $2.84.

Green Mountain Coffee Roasters sees Q3 2013 EPS of $0.71-0.78, versus the consensus of $0.65.

"Our fiscal second quarter results demonstrate the leverage inherent in our business model,” said Brian P. Kelley, GMCR’s President and CEO. "Specifically, strong sales of our single serve packs drove 14% revenue growth and 45% non-GAAP earnings per share growth in the quarter."

"Our industry-leading single serve business – made up of single serve packs, Keurig® brewers and accessories – grew a healthy 16% in our second fiscal quarter contributing to strong earnings growth and significant free cash flow generation," continued Kelley. "We expect the Keurig® brewer installed base in U.S. households to grow between 25% to 30% in fiscal 2013 with volume of our single serve packs growing proportionately with the anticipated brewer installed base."

Separately, Green Mountain announced a expanded, 5-year deal with Starbucks Coffee Company (NASDAQ: SBUX). Under the new agreement, Starbucks will add brands and varietals to the already robust Starbucks® K-Cup® and Vue® pack portfolio of offerings for Keurig® single cup brewers, ultimately tripling the number of Starbucks® products and adding brands offered on the Keurig® platform. New brands will include Seattle’s Best Coffee®, Torrefazione Italia® coffee, Teavana® Teas, and Starbucks® Cocoa. The new agreement reinforces Starbucks position as the exclusive licensed super premium coffee brand on the Keurig® K-Cup® and Vue® platforms, and further extends the Keurig® system’s position as the exclusive low-pressure single cup brewing system for fresh-brewed Starbucks® coffee, Tazo® tea and the aforementioned Starbucks brands. Financial terms of the agreement were not disclosed.

For earnings history and earnings-related data on Green Mountain Coffee Roasters (GMCR) click here.


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