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Green Mountain Earnings Climb Again

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Don't look now, but one of the most consistently outperforming companies on the Nasdaq just did it again: Green Mountain Coffee Roasters , they of the Keurig and K-cup single-brewing system, reported another impressive surprise on both the top and bottom lines after the bell Wednesday. Earnings for the company's fiscal Q4 came in at 89 cents per share (non-GAAP) on revenues of $1.0 billion in the quarter, easily beating expectations of 74 cents per share and $952 million.

It's becoming a habit with these guys: Green Mountain has now beaten earnings expectations in at least 5 straight quarters, and has done so impressively, with an average positive surprise of more than 20%. Not too shabby for a company many analysts had begun to fret was going to have to fight off major competition from companies like Treehouse Foods (THS - Free Report) especially following its expiring patents last year, and exists in an industry ranked in the bottom 20% (208 out of 265).

But the Keurig brand looks to continue to be a big success for Green Mountain, especially in the U.S. where the single-cup brewing system is still something of a novel concept. The company also showed savvy by establishing relationships with the biggest players within the coffee market, especially Starbucks (SBUX - Free Report) , which recently stated it has tripled the number of products it makes that use the Keurig brewing system.

Though GMCR stock is up nearly 50% year-to-date, its P/E multiple does not look prohibitively expensive, either. In fact, at 16x 2014 estimated earnings, the company is actually below the industry average. It also sees strong opportunities going forward in both the 'Away From Home' market as well as cold beverages, which it plans to offer in 2015.

All this said, GMCR shares are down a tad in after-market trading after a slightly positive day before the bell. We'll see if anything can be gleaned from the earnings call forthcoming that may warrant a sell-off, but at first glance, Green Mountain is giving off an appetizing aroma.

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