Green Mountain Coffee Roasters

Company Description

Green Mountain Coffee Roasters, Inc is a prominent fixture in the specialty coffee industry. The company sells a wide variety of coffee blends commercially and direct to customers in addition to teas, hot cocoa, and Keurig brewing products. Green Mountain is a socially responsible company headquartered in Waterbury, Vermont and has a market cap of approximately $900 million.

Sales are Percolating

On Apr 29 Green Mountain announced second-quarter results that included sales of $193.4 million, a 60% year-over-year increase from $120.9 million. Earnings per share came in at 50 cents, more than double last year's 23 cents. The figure topped the consensus estimate by 14 cents and was the fifth consecutive surprise.

Analysts React

This was the eleventh consecutive quarter with top-line growth of at least 39%. The explosive growth has caused analysts to raise estimates. The consensus for 2009 is now $1.50, up from $1.30 since the report. Estimates for 2010 are averaging $1.98, up from $1.69.

These figures represent 73% growth this year and 31% in 2010.

A Confident CEO

In the previously mentioned press release Lawrence Blanford, President and CEO, said "Looking forward, I am confident that our initiatives will continue to fuel GMCR’s growth and value through Keurig Single-Cup brewer sales and expanding K-Cup portion pack demand. These initiatives include the acquisition of Tully’s wholesale business and brand, the expansion of distribution, and innovations such as the test market introduction of new portion pack products like Café Escapes and Celestial Seasonings Perfect Iced Tea."

The Chart

Shares of GMCR surged off of the earnings report and have continued higher. The chart is forming a great breakout pattern, should the stock close above the top line, look for more gains to follow. Take a look below.

Read the full analyst report on GMCR