* 1st-qtr adjusted EPS $0.76 vs est $0.65
* Raises 2013 EPS range
* Shares down 9 pct after market
(Recasts; Adds analyst comment, 2013 outlook)
By Martinne Geller and Juhi Arora
Feb 6 Green Mountain Coffee Roasters Inc
forecast sales growth for the current quarter that is
slightly lower than analysts expected as retailers work through
unsold inventory of its products after a slower-than-expected
The maker of the Keurig single-cup coffee brewer and K-Cups
that go with it also reported first-quarter earnings that were
11 cents per share better than analysts expected. It raised its
full-year outlook, but only by 8 cents per share in a sign of
weakening expectations for later quarters.
That helped send shares down 7 percent in after-hours trade,
according to Marc Riddick, an analyst with The Williams Capital
Group. Riddick said such a move was not unusual for this stock,
which has been volatile since it became the target of
short-sellers including Green Light Capital's David Einhorn.
Riddick also said the change in outlook should not be that
alarming since the company has a brand new CEO, Brian Kelley,
who just joined from Coca-Cola Co. Kelley, whose favorite
Green Mountain Coffee flavor is "Nantucket Blend," also worked
at General Electric Co. That gives him both beverage and
appliance expertise, things he'll need at Green Mountain.
"The existing guidance wasn't his. He's been there 60 days.
This doesn't concern me," Riddick said.
Green Mountain said it expected sales to grow by 14 percent
to 18 percent in the fiscal second quarter and 15 percent to 20
percent for the full year.
According to a Reuters calculation, Green Mountain's
second-quarter sales goal translates to 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.
For the full fiscal year, the company raised its earnings
forecast to a range of $2.72 to $2.82 per share, from a prior
range of $2.64 to $2.74 per share. The forecast includes the
impact of share buybacks made through the end of January.
The company said on a conference call with analysts that
during the fiscal first quarter, it shipped more brewers to
retailers than the retailers were able to sell, due to a
softer-than-anticipated holiday season.
That left retailers with unsold inventory and now Green
Mountain said brewer shipments will decline slightly
year-over-year in the current quarter. However retail sales
should continue growing, it said, which will help sales of its
Waterbury, Vermont-based Green Mountain's K-Cups have lost
some market share to lower-cost rivals in 2012 after some
patents expired. Founder and Chairman Robert Stiller was also
demoted after a margin call forced him to sell stock when it was
The company recently launched the Rivo espresso machine to
rival the Verismo machine by Starbucks.
In the just-ended 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
Analysts on average had expected the company to earn 65
cents per share, on revenue of $1.33 billion.
Shares of Green Mountain were down 7 percent at $45.50 after
closing 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 and Andrew