The company gave guidance for the first quarter of its 2015 fiscal year as net sales growth in the high-single digits and $0.83 to $0.85 in earnings per share. There are consensus estimates of $0.96 in earnings per share and $1.62 billion in revenue.
Green Mountain also announced in a separate press release that Frances Rathke will be leaving her role as chief financial officer and treasurer in 2015. Rathke will continue to serve as CFO and treasurer until a replacement is appointed, at which time she will step into a new role as strategic advisor to the CEO. She will stay in this role no later than September 26, 2015, before finally leaving the company.
Brian Kelley, president and CEO of Green Mountain, commented on the earnings:
Looking to fiscal year 2015, we remain focused on what we believe is a significant opportunity to grow and premiumize home beverages in both our hot and cold platforms. We’ll continue to invest and execute behind this opportunity, given the powerful brand connection we’ve built with consumers and our successful track record of introducing disruptive and innovative products. Our strong balance sheet and healthy free cash flow generation are an advantage, enabling us to invest behind organic growth and return meaningful cash to shareholders in the form of both dividends and share repurchases.
Canaccord Genuity has a Buy rating for Green Mountain and raised its price target to $168 from $134 on November 18. Bank of America reiterated a Hold rating and moved up its price target to $160 from $145.
Shares of Green Mountain closed Wednesday down about 2% at $153.95. Following the release of the earnings report, the initial response in the after-hours market was negative and shares were down over 2% at $150.50.
The stock has a consensus analyst price target of $139.40 and a 52-week trading range of $60.65 to $160.00. The company has a market cap of $25 billion.
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