Keurig Green Mountain, Inc. (NASDAQ: GMCR)
Keurig Green Mountain, the innovative personal coffee and beverage system retailer, reported better than expected fourth quarter and fiscal 2015 financials, sending the stock up 22% during after hours trading on Wednesday.
For the fiscal 2015 fourth quarter, Keurig reported Non-GAAP earnings of $0.85 per share versus consensus estimate of $0.70 per share. Revenue for the quarter came in at $1.04 billion, slightly above consensus estimate of $1.03 billion. For the full fiscal year 2015, Keurig reported revenue of $4.52 billion and earnings of $3.56 per share. Analysts had expected revenue of $4.52 billion and earnings of $3.42 per share. Keurig also raised its quarterly dividend from 28.75 cents per share to 32.5 cents per share
Keurig CEO Comments
Brian Kelley, Keurig’s President and CEO, said:
“Our results for the quarter and the year reflect the competitive and dynamic marketplace in which we operate as well as the steps we are taking to position our Company for longer-term growth and value creation I’m particularly pleased with the benefits realized from our cost reduction efforts as well as our strong cash generation, both of which exceeded expectations in the fourth quarter. While we expect marketplace conditions will remain challenging in the near term, we have a stronger product line-up and price positioning as we enter the new holiday season. Our priorities for 2016 are to reinvigorate our hot system and continue the disciplined rollout of our Kold system. We remain confident that our investments in the business and our multi-year productivity program will deliver long-term value to shareholders. Today’s announcement of the Board’s authorization of a 13% increase in our dividend underscores our confidence in our future prospects and continues our track record of delivering strong cash returns to our shareholders.” Yahoo Finance
GMCR Technical Analysis
GMCR has been one of the most beaten down stocks in the market over the past twelve months. In fact, the stock put in an all time high of $158.87 on November 18, 2014, and on Wednesday, exactly one year later, GMCR put in a 52 week low of $39.80. The volume and strength of Wednesday’s after-hours move suggests that the stock could be in-play for days. If the earnings reaction is real, buyers will need to push the stock through resistance levels near $49 and $49.50. A further push through $50.50 puts bulls firmly in control for a run toward higher resistance near $50.90, $51.40 and $52. On the short side, look for the stock to quickly move below the after-hours closing price of $48.20. If the stock continues lower, support levels are near $47.50, $47.00, $46.50, etc. GMCR has a tendency to grind near the whole and half dollar before dropping to the next level.
GMCR Company Profile
Keurig Green Mountain, Inc. is a personal beverage system company. The Company is engaged in producing specialty coffee, coffeemakers, teas and other beverages in the United States and Canada. It operates through two segments: Domestic and Canada. Its Domestic segment includes all operations and immaterial operations related to international expansion in the United States, and the Canada segment includes all Canadian operations. Its products include pods, brewers and accessories, and other products and royalties. Its Domestic segment sells brewers, accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in its pods (portion packs), and coffee in other packaging. Its Canada segment sells brewers, accessories, and sources, produces and sells coffee and teas and other beverages in pods. It sells coffee in traditional packaging under various brands to retailers, including supermarkets, restaurants and other markets through its Website. Google Finance