Green Mountain shares fall on weak sales outlook
(Reuters) - Green Mountain Coffee Roasters Inc (GMCR.O) forecast current-quarter sales below Wall Street expectations and said growth would slow in its coffee and espresso maker business, sending its shares down 10 percent in after-market trade.
The company, which makes the Keurig single-cup coffee brewer and the K-Cups that go with it, said it expected sales to grow by 14 percent to 18 percent in the second quarter.
According to a Reuters calculation, this would result in second-quarter sales within a range of $1.01 billion to $1.04 billion, which would miss analyst expectations of $1.06 billion, according to Thomson Reuters I/B/E/S.
Waterbury, Vermont-based Green Mountain lost some ground to lower-cost rivals in 2012 after some Keurig patents expired. Founder and Chairman Robert Stiller was also demoted after a margin call forced him to sell stock when it was prohibited.
The company said first-quarter profit rose to $107.6 million, or 70 cents per share, from $104.4 million, or 66 cents per share, a year earlier.
On an adjusted basis, the company earned 76 cents per share.
Sales rose 15.6 percent to $1.34 billion in the key holiday shopping period.
Analysts on average had expected the company to earn 65 cents, on revenue of $1.33 billion in the first quarter.
Shares of Green Mountain closed at $48.94 on the Nasdaq on Wednesday.
(Reporting by Martinne Geller in New York, Arpita Mukherjee and Chris Peters in Bangalore; Editing by Maju Samuel)