Green Mountain Coffee Roasters Earnings: Here’s Why the Stock is Falling Now

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.69%.

Green Mountain Coffee Roasters Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 57.69% to $0.82 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 11.26% to $967.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Green Mountain Coffee Roasters Inc. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.77. It missed the average revenue estimate of $981.1 million.

Quoting Management: “We continue to drive leverage in our business and were very pleased to deliver earnings per share growth in the quarter that exceeded our revenue growth by more than five-fold,” said Brian P. Kelley, GMCR’s President and CEO. “Free cash flow generation was also strong, bringing our fiscal year-to-date total to $582 million.”

Key Stats (on next page)…

Revenue decreased 3.75% from $1 billion in the previous quarter. EPS decreased 11.83% from $0.93 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.70 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $3.09 to a profit of $3.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]