Keurig Green Mountain Q4 Earnings Preview

Keurig Green Mountain Inc GMCR reports FY Q4 earnings Wednesday after the close.

The company is estimated to report EPS of $0.77 on revenue of $1.16 billion.

Bank of America analyst Bryan D. Spillane forecasted EPS of $0.77, in line with consensus.

“We are forecasting sales growth of 12.2 percent (Portion packs +15 percent/Brewers and accessories +14 percent), operating profits +16.8 percent (SG&A +$25m vs 4Q13). Our EPS estimate is at the top end of management’s guidance range ($0.75) mainly due to our view that the company is likely to have offset more of the KO and Lavazza dilution,” according to Spillane.

BTIG analyst Theo Brito forecasted EPS at $0.75 and expected “a weak Q4 due to continued pressure on pricing and higher spending behind Keurig 2.0 launch.”

“Recently announced K-Cup pricing will help FY15 results, but we still see margins under pressure and topline uncertainty given low visibility on new product launches. Our FY15 EPS estimate is $3.85. On current fundamentals we believe valuation is stretched,” according to Brito.

The stock was under pressure heading into the earnings announcement trading at $153.69, down 2.17 percent.