Diamonds and Dogs
11/28/12The Fresh Market Inc. (TFM)
The Fresh Market is looking rotten today, down 12.38% at $52.78. The specialty grocery retailer saw its shares tumble after weak earnings and guidance. The Fresh Market, which operates 128 stores reported net income of $0.23 per share, missing analysts' estimates of $0.26 per share. The company stated it expected full year same-store sales growth to be 5.5% to 6.5%, with an EPS of $1.33 to $1.38. Previously, Fresh Market was expecting an EPS $1.38, now it's looking like it might be around $1.35 per share. One good note from Fresh Market's earnings report was that sales climbed 22.1% to $321.5 million, beating analysts' estimates of $318.67 million. The company is still trading well above its 52-week low of $33.82.
Green Mountain Coffee Roasters Inc. (GMCR)
Green Mountain Coffee is giving its investors a jolt today, up 27.32% at $36.86. The coffee company (well known for its Keurig coffee maker and K-cups) saw its shares spike after a shocking earnings report. Net sales increased 33% and GAAP income increasing 22%, year over year. After beating analyst estimates, many analysts' moved their price targets higher. Canaccord Genuity, Suntrust, Keybanc, and Roth Capital all raised their price targets to $45. Scott Van Winkle of Canaccord said, "Green Mountain vastly improved inventory situation from a year ago and a turn to positive free cash flow take the trends from good to very good." Green Mountain's 52-week high is $71.15, so there is still significant upside potential for the company.