Green Mountaine (GMCR) Pours Hot Coffee on Short Sellers, Ramps 20%+ on Q4 Results

November 27, 2012 5:10 PM EST
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Shares of Green Mountain Coffee Roasters (Nasdaq: GMCR) went ballistic in after-hours trading on Tuesday following the release of the company's Q4 earnings, with solid beats on the top and bottom line and raised guidance. Investors reacted to the pristine report by sending shares of GMCR higher by an eye-popping 26 percent – not bad for a day's work.

Green Mountain Coffee Roasters reported revenue of $946.7 million, well ahead of estimates that called for revenue of $902.23 million. Last year GMCR reported revenue of $711.90 million. This represents revenue growth of 33 percent.

Non-GAAP EPS came in at 64 cents, easily beating estimates of 48 cents, and 23 percent ahead of last years earnings.

"Our fourth quarter fiscal year 2012 revenue and earnings growth speaks to GMCR's continued strategic progress and we believe points to the significant opportunity still ahead for the Company,” said GMCR’s President and CEO, Lawrence J. Blanford. “We continue to drive awareness of Keurig® single cup brewing and consumers continue to embrace and adopt Keurig® brewers and Keurig Brewed® beverages as an integral part of their daily routine."

Green Mountain Coffee Roasters reported single serve packs sales increased 47 percent year-over-year in Q4 to $700 million. Accessory sales grew 30 percent to 150 million, while 'Other products and Royalties' declined 21 percent to $96 million.

Looking forward, Green Mountain Coffee Roasters sees Q1 2013 sales up 14-18% and non-GAAP EPS of $0.62 to 0.67, ahead of the consensus of $0.59. For the year, the company sees sales up 15-20% and non-GAAP EPS of $2.64-$2.74 versus the consensus of $2.51.

The 39 percent short-interest in the stock is contributing to tonight's 22 percent after-hours surge. Notably, David Einhorn is short the stock, albeit at much higher levels.

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