WATERBURY, Vt. – Shares of Keurig Green Mountain Inc. slid Wednesday after the single-serve coffee machine company's quarterly results fell short of Wall Street expectations and it cut its outlook for the year.
Keurig Green Mountain said revenue in its fiscal first quarter was worse than it expected in part because of a disappointing holiday sales season for brewers, including a big recall of 7 million brewers because of a risk of hot liquid spraying out and burning users.
The company said those problems were "transitory," but it trimmed its earnings per share and sales growth outlooks for the year. Keurig Green Mountain said foreign exchange would cut 15 cents from its earnings per share for the year. Many companies have recently cited negative effects of the stronger dollar, which cuts into results when international income is translated back into the dollar.
For the second quarter, which runs through March, the company expects per-share earnings of $1 to $1.05. Analysts surveyed by FactSet Investment Research had forecast $1.18.
For the period that ended in December, the Waterbury, Vermont-based company reported earnings of $134.6 million, or 82 cents per share, down from $138.2 million, or 91 cents per share.
Adjusted for one-time items, earnings came to 88 cents per share. Wall Street expected 89 cents per share.
Revenue was nearly unchanged at $1.39 billion. Analysts predicted $1.5 billion, according to Zacks.
Keurig Green Mountain shares lost 7.8 percent to $111.80 in aftermarket trading. The stock has climbed 51 percent in the past 12 months, but is down 8.5 percent in 2015.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GMCR at http://www.zacks.com/ap/GMCR
Keywords: Keurig Green Mountain, Earnings Report