2. Green Mountain Coffee Roasters engages in the specialty coffee and coffee-making business with two operating segments: Specialty Coffee business unit (SCBU) and the Keurig business unit (Keurig).
Sales for the third quarter of 2011 increased 127% to $717.2 million from the year-ago period. Net income for the quarter grew to $56.3 million, or 37 cents per diluted share, compared to $18.4 million, or 13 cents per share, in the year-earlier quarter. Since the company's stock offering closed on May 11, cash and short-term cash investments stood at $106.8 million, as of June 25, 2011, up from $64.5 million as of March 26.
While rating the stock medium bullish, a Bedford report cites the company's licensing deals in the past one year to sell coffee refills under nearly all the major U.S. coffee brands, including Folgers, Starbucks and Dunkin' Brand's (DNKN) Dunkin' Donuts.For the fourth quarter of 2011, the company estimates consolidated net sales growth of 100% to 105%, while non-GAAP diluted earnings per share are seen at a range of 44 cents to 48 cents. Full-year net sales have been raised to a range of 98% to 100% from the earlier 82% to 87%. Excluding any acquisition-related transaction expenses, non-GAAP earnings per share are forecast between $1.63 and $1.67. Of the 11 analysts covering the stock, 73% rate it a buy and 18% rate it a hold. The average 12-month price target of analysts polled by Bloomberg is $121.50, 20.6% greater than recent levels.