Quarter Earnings Beat - 1Q Future Misses by a bit...
The earnings for 4Q were pretty darn good. It wasn't awful like golden boy wanted us all to believe it could be. 1Q estimates are down a bit, but single-serve cup sales (GMCR's bread and butter) continue to rise. Competitor pods haven't yet made a major dent in the company's bottom line (yet), and the company has plenty of room for growth in other nations.
This isn't the bad news that shorts were looking for. Their expectations that the failure of the Vue was going to significantly affect this company's bottom line did not come to fruition. How could it with Keurig machines and k-cups still selling so well? (Golden?)
Either way, a short decides to short a stock when they think the company will have a downturn. It didn't. The shorts were wrong and unless they want to continue shorting a stock with no hope of making any money on it, they will begin to cover... Combine this with GMCR's stock buyback and this could lead to a nice bump in the price for now.