Green Mountain Earnings Battle Value & Performance (GMCR)
Green Mountain Coffee Roasters, Inc., (NASDAQ: GMCR) has been a stock that nearly defied logic in its meteoric rise. It has at least defied gravity. The company has just announced its fiscal 2009 third quarter earnings for the June 27,…
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The company noted that the cost of sales rose to 66.4% of total net sales compared to 64.0% a year ago on significant increase in sales of Keurig At Home Single-Cup brewers. The company also increased its accounts receivable by 82% from a year ago to $68.5 million, while inventories rose by 64% to $103.2 million. Long-term debt increased to $126.0 million from $118.7 million a year ago.
For 2009, Green Mountain is projecting consolidated net sales growth of 58% to 61%, and it sees GAAP earnings between $1.37 and $1.41 EPS. That figure includes the pre-tax $17 millio, or $0.27 per diluted share, Kraft patent litigation settlement, and the non-cash amortization expenses related to the identifiable intangibles of $5.3 million or approximately $0.08 per share. Excluding the Kraft litigation settlement, fully diluted non-GAAP earnings per share in the range of $1.10 to $1.14 per share, up from prior estimates of $0.98 to $1.02 per share. Thomson Reuters lists consensus estimates for 2009 at $1.03 EPS and $799.55 million in revenues.
For all of 2010, it is targeting total consolidated net sales growth of 45% to 50% with total K-Cup portion packs shipped system-wide by all Keurig licensed roasters to increase in the range of 65% to 70%. It sees GAAP earnings in a range of $1.70 to $1.80 EPS, including the non-cash amortization expenses related to the identifiable intangibles mentioned above of $5.3 million or approximately $0.08 per share. Thomson Reuters listed the 2010 consensus as $1.47 EPS and $1.04 billion in revenues.
The good news is that the stock has already come off its lows. Shares closed down 2.3% at $65.90 today, and the after hours session shows shares now down under 5% at $62.70. Shares had been down closer to $62.00 about fifteen minutes ago.
JON C. OGG
JULY 29, 2009
Contact [email protected] for any questions or corrections.
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