Green Mountain Cuts Outlook, Plans Buyback

by Alyssa Oursler | August 2, 2012 10:48 am

Green Mountain Coffee Roasters (NYSE:GMCR[1]) — which was recently edged out Starbucks (NASDAQ:SBUX[2]) for the best coffee brand of the year[3] — cut its full-year forecast for sales yesterday after announcing Q3 earnings.

The company barely beat forecasts on the bottom line with earnings of $73.3 million, or 52 cents per share. Analysts had been expecting an EPS of 50 cents.

Sales, though, missed estimated by around $4 million. The $869.2 million on the top line was an improvement of 21% from last year.

For the year, revenue was originally expected to be at least $4 billion, but has been lowered to a range of $3.79 to $3.84 billion for its fiscal 2012. And earnings have also been cut around 10% to a range between $2.21 and $2.26.

The company announced plans to buy back $500 million worth of shares over the next two years.

GMCR shares took a hit right after the call on Wednesday but turned around and were up around 27% by mid-morning on Thursday.

Still, the company — which is part of InvestorPlace‘s Real America Index[4] because of its commitment to environmentalism and sustainable agriculture — has lost almost half its value since the start of the year.

Endnotes:
  1. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  2. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  3. best coffee brand of the year: http://investorplace.com/2012/04/study-green-mountain-named-best-coffee-brand-of-the-year/
  4. Real America Index: http://investorplace.com/real-america-index/vermont-green-mountain-coffee-roasters-gmcr-a-bitter-aftertaste/

Source URL: http://investorplace.com/2012/08/green-mountain-cuts-outlook-plans-buyback/
Short URL: http://invstplc.com/1nIeFeZ