BTIG Comments On Keurig Green Mountain After Q4 Report

BTIG commented on Keurig Green Mountain Inc GMCR Thursday after the company beat Q4 earnings estimates.

Analyst Theo Brito noted that "Keurig delivered stronger Q4 topline & margins (reported EBITA +26 percent y/y) thanks to acceleration in higher-margin portion-pack sales and continued favorable coffee costs.”

Brito observed that “cash flow came in much weaker due to increases in both receivables and inventories. And F15 guidance lighter than expected, but may be mix of conservatism and still limited visibility.”

“GMCR guided FY15 net sales to growth in +HSD to low-DD range (consensus +15 percent heading in), and EPS growth of +MSD-HSD, which includes ~27c dilution from equity deals (consensus +4 percent). Q1 guidance is for +HSD sales growth (consensus +16 percent) and $0.83-0.88 EPS (consensus $0.96),” according to the analyst report.

BTIG rated Keurig at Neutral with no price target.

Keurig Green Mountain recently traded at $142.48, down 7.4 percent.