Green Mountain Coffee Roasters (GMCR) reported third quarter earnings of $0.36 per share, in-line with the Zacks Consensus Estimate. Earnings were up 112% year-over-year. Net sales increased by a strong 61% year-over-year to $190.5 million, driven by strong gains from the Keurig business, which shipped approximately 439 million Keurig brewers, a 187% increase compared to the prior-year quarter. GMCR has reported 27 consecutive quarters of double-digit sales growth and 12 consecutive quarters of overall top-line growth of above 39%. Organic sales of Green Mountain Roasters increased 39% driven by strong shipments (40%) of Green Mountain K-Cup coffee, tea and hot cocoa. In addition, the newly acquired Tully’s business also contributed positively to the top-line with a 5.5% increase in sales. Furthermore, the introduction of Café Escapes and the continued expansion of the distribution network and sales channels, targeting the at-home consumer also generated strong results....

Despite the recessionary environment, demand for specialty coffee has been rising. According to the data provided by the National Coffee Association's (NCA) 2009 National Coffee Drinking Trends market research survey, coffee consumption has remained steady at 59% so far in 2009, and the NCA also stated that the at home consumption has hit the highest levels in 2009 since 2003 increasing by 5%.

Further, Andrew Hetzel, President and Founder of Cafemakers, states that, a smaller-sized coffee with strong flavors provides more satisfaction to the consumer and therefore customers are also willing to pay more. Customers choose specialty coffee brands based on the total value proposition that includes quality, variety, convenience, and price. Therefore, companies such as Green Mountain Coffee Roasters (GMCR), Peet's Coffee & Tea (PEET), Kraft Foods (KFT), Sara Lee (SLE)

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Green Mountain Coffee Roasters produced a return of over 113% this year alone. When powerful momentum stocks are charging upwards, it can be difficult to know when to get on board. But it’s not as difficult as you would believe.

If you want the inside track on the best momentum stocks with ultra-explosive gains, throw on your “x-ray glasses” and focus on one of the most useful financial ratios around.

It’s called return on equity (ROE), but in many ways it tells us so much more.

ROE is one of the best measures of a corporation’s profitability. It shows you how much profit the company generates with the money shareholders have invested. Let me show you how to easily pull this number out - and how profitable it can be.

How to Calculate Return On Equity (ROE)

You calculate return on equity (ROE) by dividing net income by a shareholder’s equity. The higher the

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Return On Equity (ROE): Find Explosive Momentum Stocks With This Financial Ratio

by Dr. Scott Brown, Education Director, Investment U

Green Mountain Coffee Roasters produced a return of over 113% this year alone. When powerful momentum stocks are charging upwards, it can be difficult to know when to get on board.

But it’s not as difficult as you would believe.

If you want the inside track on the best momentum stocks with ultra-explosive gains, throw on your “x-ray glasses” and focus on one of the most useful financial ratios around.

It’s called return on equity (ROE), but in many ways it tells us so much more.

ROE is one of the best measures of a corporation’s profitability. It shows you how much profit the company generates with the money shareholders have invested. Let me show you how to easily pull this number out - and how profitable it can be.

How to Calculate

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Headquartered in Waterbury, Vermont, Green Mountain Coffee Roasters (GMCR) is a provider of premium, specialty coffees through multiple wholesale distribution channels and also to the single-cup brewing industry. Green Mountain Coffee operates in a very competitive and fragmented market. The company competes against all sellers of specialty coffee, including Dunkin Donuts, New England Coffee, Peet’s (PEET), Starbucks (SBUX), Seattle’s Best and others.

Green Mountain Coffee Roasters is a growth company in the premium coffee and tea industry. Management is implementing a growth strategy based on a multi-channel geographic penetration business model. The company is expanding geographically and by adding new relationships.

Having generated 24 consecutive quarters of double-digit sales growth and twelve consecutive quarters with growth in excess of 25%, the stock is fairly valued at a premium P/E. The Hold rating is maintained due to high valuation and rising input costs.

Read the full analyst report on GMCR.

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