Q3 Preview: Will Green Mountain (GMCR) Results Leave Investors Energized...or Burnt?
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Price: $91.67 --0%
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Shares of Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR) are forming somewhat of a urn-type shape Wednesday, up about 0.2 percent but well off intraday highs, heading into the java giant's third-quarter 2012 earnings report.
Into the tape, analysts are looking for Green Mountain to produce just one cent of EPS growth, to 50 cents. Sales are expected to rip 21.8 percent higher to $873.3 million. Estimize consensus numbers see more robust growth, to EPS of 67 cents and revs of $994.6 million.
Data from Bloomberg has seven analysts at Buy on Green Mountain, six at Neutral, and one with a Sell.
The Street's price target average is $46, which ranges from $35 to $70. Over the last year, Green Mountain shares have traded within a range of $17.11 to $115.98. At a current level of $18.40, the lowest price target still anticipates plenty of upside on the stock.
Traders will likely turn to Starbucks (Nasdaq: SBUX) third-quarter results, which showed the coffee giant missing consensus views.
In addition, there's the matter of Peet's Coffee & Tea (Nasdaq: PEET), which received at $73.50 per share bid from Joh. A. Benckiser last week. The bid values Peet's at about 32 times next year's earnings expectations. If Green Mountain carried the same valuation (it doesn't), then shares should be going for something north of $90 to $95.
On the flip side, some market action points to the best days at Green Mountain all but being over. Hedge fund giant David Einhorn has been banking off his Green Mountain short. In addition, some options activity recently suggested that investors are betting on Green Mountain missing lightened expectations.
Analysts have also voiced concerns on K-Cup sales ahead of the patent expiration in September. Stifel Nicolaus commented earlier in July that Green Mountain is already seeing pressure from private label brands. In addition, the firm said K-Cup inventory has been rising at discount stores, which may point to ebbing demand and/or oversupply.
Stifel will be watching for comments on e-Commerce sales and pricing, coffee packs reaching expiration, and more color on the Vue espresso maker.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Green Mountain's past performance at Streetinsider's Green Mountain's Income Statement.
Into the tape, analysts are looking for Green Mountain to produce just one cent of EPS growth, to 50 cents. Sales are expected to rip 21.8 percent higher to $873.3 million. Estimize consensus numbers see more robust growth, to EPS of 67 cents and revs of $994.6 million.
Data from Bloomberg has seven analysts at Buy on Green Mountain, six at Neutral, and one with a Sell.
The Street's price target average is $46, which ranges from $35 to $70. Over the last year, Green Mountain shares have traded within a range of $17.11 to $115.98. At a current level of $18.40, the lowest price target still anticipates plenty of upside on the stock.
Traders will likely turn to Starbucks (Nasdaq: SBUX) third-quarter results, which showed the coffee giant missing consensus views.
In addition, there's the matter of Peet's Coffee & Tea (Nasdaq: PEET), which received at $73.50 per share bid from Joh. A. Benckiser last week. The bid values Peet's at about 32 times next year's earnings expectations. If Green Mountain carried the same valuation (it doesn't), then shares should be going for something north of $90 to $95.
On the flip side, some market action points to the best days at Green Mountain all but being over. Hedge fund giant David Einhorn has been banking off his Green Mountain short. In addition, some options activity recently suggested that investors are betting on Green Mountain missing lightened expectations.
Analysts have also voiced concerns on K-Cup sales ahead of the patent expiration in September. Stifel Nicolaus commented earlier in July that Green Mountain is already seeing pressure from private label brands. In addition, the firm said K-Cup inventory has been rising at discount stores, which may point to ebbing demand and/or oversupply.
Stifel will be watching for comments on e-Commerce sales and pricing, coffee packs reaching expiration, and more color on the Vue espresso maker.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Green Mountain's past performance at Streetinsider's Green Mountain's Income Statement.
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