Green Mountain Coffee Roasters Inc. (GMCR) Wants a Caffeinated Tomorrow

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is riding high these days as it heads into tomorrow’s quarterly report.

Shares of the company behind the Keurig single-cup coffee brewing system hit a fresh 52-week high on Friday, and even a bearish analyst is tempering his near-term pessimism on the stock.

Stifel Nicolaus analyst Mark Astrachan raised his profit targets on Green Mountain yesterday, but he’s sticking with his sell rating.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)Wall Street sees Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s earnings and revenue climbing 14% and 16%, respectively, for its fiscal third quarter that ended in March, but Astrachan sees a profit of $0.80 a share, 25% ahead of what the brew master earned a year earlier.

Astrachan’s argument is that lower coffee costs will result in widening margins at Green Mountain. He’s also boosting his bottom-line target for all of fiscal 2013 from $2.80 a s hare to $2.95 a share. Wall Street’s average is just $2.84 a share.

Naturally, one wouldn’t expect a bearish analyst to be perched above his peers, and the disparity here comes as we look out to fiscal 2014. Astrachan sees net income sliding to $2.83 a share, up from his earlier $2.71 a share forecast but still well below the consensus calling for continuing bottom-line growth at Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR).

Astrachan feels that the market penetration for single-serve java brewers is already far enough along enough where new brewer and K-Cup sales growth will slow. Don’t tell that to Starbucks Corporation (NASDAQ:SBUX), which entered this market last year with its espresso-centric Verismo platform. Like most skeptics, he also fears what will happen to the company now that K-Cup patent expirations open up the refill market to third parties. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) may be the undisputed leader in this niche, but its brand is certainly not as established as Starbucks Corporation (NASDAQ:SBUX)’s when it comes to premium coffee.

Green Mountain’s been a wild ride lately. It’s been a big winner for bulls in recent months as the stock has more than tripled since bottoming out this past summer. However, it was the bears that won convincingly after the stock peaked in the triple digits the summer before.

The next tug should come tomorrow afternoon after Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) pours out its fiscal second-quarter financials.

The article Green Mountain Wants a Caffeinated Tomorrow originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters. The Motley Fool recommends Green Mountain Coffee Roasters. It recommends and owns shares of Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!