Shares of Green Mountain Coffee Roasters (Nasdaq: GMCR) are
lower Wednesday heading into its fourth-quarter earnings report,
expected out after the market close. Green Mountain has set up a
conference call for 5pm EST. To access its investor relations
website for more info on the call, click the logo:
The Street is looking for Green Mountain to report earnings of 48
cents per share on revenue of $760.48 million. The company reported
earnings of 49 cents per share last quarter, and earnings of 22
cents produced in the same period last year.
Through the quarter, Green Mountain shares rose about 4 percent to
$92.94 at the end of September. Green Mountain has taken a hit
since then: shares are down 27 percent. Green Mountain has traded
within a range of $29.55 to $115.98 over the last 52-week time
Last quarter, Green Mountain reported a book value of $11.87 per
share, with cash of 50 cents per share. The stock is currently
trading for about 26x next years earnings expectations, compared
with 33.3x for Peet's Coffee & Tea (Nasdaq: PEET) and 11.4x for
Coffee Holding (Nasdaq: JVA).
Data from Bloomberg has 10 analysts with a Buy rating on Green
Mountain, two at Hold, and one suggesting to Sell. The price target
average is $117, with a low of $112 and high of $130.
Into the quarter, KeyBanc is bullish on the potential for Green
Mountain and its Keuring machines. Recent data shows about 90
million U.S. households consume 2 cups of coffee per day; Keurig
brewers are in only about 8 to 9 percent of U.S. households.
KeyBanc is modling for a 22 percent penetration rate (not clear
whether there is a separate metric for office/corporate use as
well, either for small business or for executive offices).
For its model, KeyBanc took into consideration a lower attachment
rate (K-Cups used per day), and that big-name partnerships (like
with Starbucks (Nasdaq: SBUX)) will not lead to significantly lower
KeyBanc is looking for earnings of 49 cents per share and sales of
Notably, the firm recently made arguments against hedge fund giant
David Einhorn and his short thesis on Green Mountain shares.
for more on that.
Stay tuned to StreetInsider.com's
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 Blizzard Income Statement