|Forbes.com, Winter, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.|
Following a robust first quarter (fiscal 2012) report for Green Mountain Coffee Roasters (GMCR), Canaccord Genuity consumer analyst Scott Van Winkle reiterated his BUY rating and $94 price target on the company and raised his revenue estimates for 2012 and 2013. Noting he expects several years of rapid revenue and earnings growth, Mr. Van Winkle said:
“We assumed this year would be about earnings rather than beginning with accelerated momentum.” However, Van Winkle noted brewer sales momentum was the key Q1 take-away with GMCR selling 4.2M brewers versus his forecast of 2.8M. He also noted K-cup unit sales rose 81% versus his forecast of 62%.
Of brewer shipments he noted, “Brewer shipments are the true key to the first quarter results as the holiday season is the peak brewer selling season and the growing installed base will be what drives the company’s fundamentals.”