(GMCR) Green Mountain Coffee Roasters – Momentum – Zacks Rank Buy

Green Mountain Coffee Roasters (GMCR) is up big over the last 2 months in response to the company’s strong second-quarter results and new partnership with Walmart, set to distribute the company’s products in over 3,000 of its stores.

Company Description

Green Mountain Coffee Roasters in specialty coffee in both the United States and internationally. The company was founded in 1981 and has a market cap of $2.16 billion.

Whether the economy is good for bad, consumers still love their coffee, helping this specialty coffee maker report better than expected second-quarter results on April 29.

Second-Quarter Results

Sales were up 60% from last year to $193.4 million. Earnings came in at 33 cents, 9 cents ahead of the consensus estimate.

The company has beat the consensus in each of the last 4 quarters by an average of 5 cents, or 29%.

Partnership With Walmart

Green Mountain also announced that it had entered into an partnership with Walmart that will place the company’s single cup coffee brewers in over 3,000 of its stores.

Bullish Guidance

In response to the strong sales trends and the new partnership with Walmart, Green Mountain laid out some very bullish guidance, saying it expects sales to be up 58-61% on the year.

Analysts are targeting full-year earnings of $1.01, up 14 cents in the last 60 days, while the next-year estimate is pegged at $1.42, an impressive 41% earnings growth projection.

The Chart

Shares of GMCR began trending higher with the market in early March before gapping open higher and surging on news of the great quarter, Walmart deal and bullish projections. Take a look at the chart below.


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