Keurig Green Mountain (GMCR) Misses Q1 EPS by 1c, Revenue Light, Offers Guidance

Keurig Green Mountain (NASDAQ: GMCR) reported Q1 EPS of $0.88, $0.01 worse than the analyst estimate of $0.89. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.46 billion.

Business Outlook and Other Forward-Looking Information

“Looking ahead, as a result of certain factors that impacted the first quarter, we now expect revenue to grow mid- to high-single digits in fiscal year 2015,” said Kelley. “Our innovative technology and growing installed base continue to attract premier beverage brands and, with the signing of recent agreements, we have further extended our unrivalled network of partnerships. We are focused on what we believe is a significant opportunity to grow and premiumize at-home hot beverages and we are on track to launch our Keurig cold system in the fall.”

The Company updated its outlook for fiscal year 2015 and provided its outlook for the second quarter:

Fiscal Year 2015

• Net sales growth in the mid-single to high-single digits compared to fiscal year 2014
• An annual effective tax rate of approximately 34% to 35%
• Non-GAAP EPS growth of mid-single digits. This outlook:
  • Includes an approximate $0.27 dilutive impact from the fiscal 2014 Coca-Cola and Lavazza Equity Transactions
  • Includes an estimated $0.15 headwind from foreign currency exchange
  • Excludes any additional actions the Company may take to offset dilution during fiscal year 2015
  • Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation
• Free cash flow in the range of $225 million to $325 million
• Capital investment in the range of $425 million to $475 million

Second Quarter 2015

• Net sales growth in the mid-single digits over the second quarter of fiscal year 2014
• An effective tax rate of approximately 36% to 37%
• Non-GAAP EPS in a range of $1.00 to $1.05 which:
  • Includes an approximate $0.08 dilutive impact of the fiscal 2014 Coca-Cola and Lavazza Equity Transactions
  • Includes an estimated $0.07 headwind from foreign currency exchange
  • Excludes any additional actions the Company may take to offset dilution during the quarter
  • Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation

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

You May Also Be Interested In

• General Motors (GM) Tops Q1 EPS by 50c, Raises Guidance
• JPMorgan is worried about further S&P 500 sell-off potential
• Pinnacle Financial Partners (PNFP) Tops Q1 EPS by 3c; offers outlook