Green Mountain’s 3Q Profit Up, Revenue Disappoints

Green Mountain Coffee Roasters Inc.’s fiscal third-quarter net income jumped 59 percent, helped by stronger sales in the U.S. and lower coffee bean costs.

The Waterbury, Vt., company also issued a better-than-expected forecast for its fourth quarter and full year. But the company’s revenue for the most-recent quarter fell short of market expectations and its shares slipped in after-hours trading Wednesday.

Green Mountain reported after the market closed that it earned $116.3 million, or 76 cents per share, for the quarter that ended June 29. That is up from $73.3 million, or 46 cents per share, in the same quarter last year.

After adjusting for expenses tied to an SEC inquiry and other unusual items, it earned 82 cents per share versus 52 cents per share last year.

Analysts polled by FactSet, on average, were anticipating adjusted earnings of 76 cents per share.

The company’s revenue increased to $967.1 million from $869.2 million as stronger sales in the U.S. offset a decline in Canada. The quarter’s revenue fell short of the $981.1 million that analysts had anticipated.

Green Mountain’s sales of its Keurig single-serve brewing system slipped 4 percent to $133.1 million, but sales of the single-serve packs used with those systems increased 18 percent to $751.7 million, helped by higher prices and sales volume. Its other products and royalties revenue fell 11 percent to $82.3 million.

The company said that its gross margin increased from 34.9 percent to 42.1 percent, helped by favorable coffee bean costs, lower labor and manufacturing costs and other items.

Green Mountain said that it expects to earn between 69 and 74 cents per share for its fourth quarter on an adjusted basis, the mid-point exceeding analyst forecasts of 71 cents per share. It anticipates its revenue for the period will increase 11 to 15 percent over the prior year.

For the full year, Green Mountain expects to earn between $3.19 and $3.24 per share for the year on an adjusted basis; analysts had forecast $3.16. It forecast annual revenue gains of 13 to 14 percent.

Both of the forecasts exclude the impact of the 53rd week.

Shares of Green Mountain fell $4.51, almost 6 percent, to $74.73 in after-hours trading. Its stock fell $2.06 to close regular trading at $79.26. Its stock has gained 92 percent in 2013.