Green Mountain Coffee Roasters Inc. (GMCR) Earnings Preview

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Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) will be reporting its fiscal first quarter earnings on Wednesday, February 5 after the bell. The Waterbury, Vermont-based company’s earnings have topped Wall Street consensus for the last seven consecutive quarters. Over the past three months, the stock has outperformed the S&P 500 index by 32%. Green Mountain Coffee Roasters’s improving prospects have made investors more optimistic about the coffee-brewer giant.

Expectations high from Green Mountain

Analysts expect Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) to post 90 cents in Q1 earnings, up 18.4% from the year-ago quarter’s 76 cents per share. Wall Street EPS forecasts range between 87 cents and 98 cents. The company’s own guidance stands at 85-90 cents in Q1 EPS and $3.75-$3.85 in full year 2014 earnings. Analysts have issued somewhat mixed opinions on Green Mountain Coffee Roasters. Over the past few months, they have reduced their Q1 earnings estimates by 6 cents on average, but increased full year 2014 forecasts by 1%.

Wall Street forecasts Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s revenues to jump 4.9% YoY to $1.4 billion. The consensus ranges between $1.36 billion and $1.49 billion. During the last quarter, Green Mountain earned 89 cents per share with $1.05 billion in sales. Last month, the company announced a special dividend of 25 cents per share.

Green Mountain can regain patent protection

Analysts have argued that the loss of patent on its Keurig K-Cups is going to hurt the company’s sales. Its sales have been affected, but not to the extent feared. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is taking the necessary steps to gain patent protection with its new product offerings. Analysts say Keurig 2.0 will be providing the company growth for the next several years to come. The innovative new offering can brew more than just one cup of coffee. Green Mountain Coffee Roasters hopes that its combination of interactive readability and K-Carafe technologies will entice customers to upgrade. With these changes, the company can regain patent protection to Keurig 2.0 K-Cups.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shares inched up 0.94% to $80.89 in pre-market trading Wednesday.

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