William Blair Maintains Outperform On Green Mountain Coffee Following Solid Fourth-Quarter Results And Outlook


William Blair analyst Jon Andersen maintained an Outperform rating on Green Mountain Coffee (NASDAQ:GMCR), following the company’s earnings results. No price target was provided.

Andersen noted, “Management updated guidance for 2015, calling for EPS growth in the mid- to high single digits, which implies a range of about $4.10 to $4.30 and encompasses the current consensus estimate of $4.12. This outlook includes roughly $0.27 (7%) of dilution from the Coke (KO $44.22) and Lavazza equity transactions as well as a $0.04 (1%) headwind from unfavorable foreign currency. Full-year sales are expected to grow at a high-single- to low-double-digit rate. We maintained our 2015 EPS estimate of $4.25, up 8% year-over-year. We also initiated a fiscal 2016 EPS estimate of $4.90, up 15% year-over-year.”

Furthermore the analyst noted, “Shares trade at about 37 times our fiscal 2015 EPS estimate. Keurig is the clear leader in single-serve, podbased segment of the hot beverage market in North America, a position it appears ready to extend with the coming introduction of Keurig 2.0. And with Keurig Cold in development, the company appears poised to accelerate the market development and consumer uptake for similar systems in the cold beverage industry. We believe this creates the potential for above-average earnings growth over time.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jon Andersen has a total average return of 18.8% and a 70.0% success rate. Andersen has a 40% average return when recommending GMCR, and is ranked #867 out of 3393 analysts.

 

 

 

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