(MENAFN - ProactiveInvestors - Australia) Green Mountain Coffee Roasters (NASDAQ:GMCR) late Tuesday posted fiscal fourth-quarter results that beat market expectations.
The company was a pioneer with its Keurig single-serve coffee makers in the U.S. with its Keurig system but began to struggle as rivals released their own versions and key patents expired. It also has faced a an SEC inquiry into its accounting practices.
However, Green Mountain has hired a new CEO, added new brewer models and extended the array of single-serve beverages it sells.
For the quarter ended September 29, Green Mountain said it earned 91.9 million, or 58 cents per share, up from 75.4 million, or 47 cents per share, earned a year earlier. On an adjusted basis, earnings came in at 64 cents per share which beat the 48 cents per share that analysts polled by FactSet had forecast.
Total revenue increased 33 per cent to 946.7 million from 711.9 million on stronger sales and price increases for its single-serve coffee packs. Analysts had expected revenue of 902.7 million.
"Our fourth quarter fiscal year 2012 revenue and earnings growth speaks to GMCR's continued strategic progress and we believe points to the significant opportunity still ahead for the company," said Green Mountain's president and CEO Lawrence J. Blanford.
Green Mountain CFO Frances G. Rathke added: "Stronger than expected fourth quarter fiscal year 2012 sales combined with ongoing inventory management efforts and lower-than-forecasted capital investment enabled us to generate free cash flow ahead of plan."
"We expect to continue to strategically invest in the business as demand warrants, and continue to forecast free cash flow in a range of 100 million to 150 million for fiscal year 2013."
The company managed to improve its sales for the quarter, reporting that revenue from sales of its brewers and accessories increased 45 per cent year-over-year and single-serve pack revenue increased 59 per cent. Royalty revenue fell for the quarter.
For its fiscal first quarter, Green Mountain said it expects to earn 62 to 67 cents per share on an adjusted basis. Sales would increase 14 to 18 per cent, putting sales in the range of 1.32 billion to 1.37 billion.
Analysts had forecast earnings of 57 cents per share on revenue of 1.28 billion.
Shares soared 6.45 to 35.40 in after-hours trading. Green Mountain's stock price had fallen nearly 60 per cent over the past nine months.
Green Mountain raised its forecast for the 2013 fiscal year to a range of 2.64 to 2.74 per share, from a prior view of 2.55 to 2.65 per share. It expects net sales to grow 15 per cent to 20 per cent for 2013.
