Market Overview

Green Mountain Continues to Plunge Intra-Day; Company Provided Terrible Q3 Guidance

Shares of Green Mountain Coffee Roasters (NASDAQ: GMCR) are getting destroyed on Thursday after the company released its fiscal Q2 earnings results on Tuesday afternoon. The company reported EPS of $0.64 versus estimates of $0.64.

Revenues were $885.05 million versus estimates of $971.65 million.

Gross margins in the quarter fell 210 basis points to 35.4 percent.

Looking ahead to Q3, Green Mountain sees adjusted EPS of $0.48-$0.53 and sales of $861 million to $897 million. This is well below current Q3 consensus EPS of $0.72 on revenues of $1.05 billion.

As a result of the poor Q2 revenue number and the terrible Q3 guidance, GMCR shares have now lost nearly 50% on the day. Shares gapped down sharply at the open and have continued to plummet intra-day.

After opening the session at $29.51, the stock was last trading at $25.08. Year-to-date, GMCR has fallen nearly 42% and the stock is now down 59% over the last 52-weeks.

The collapse of the one-time high-flier is comparable to that of Netflix (NASDAQ: NFLX) which fell from above $300.00 to its current price of $77.00 over the last year.

Green Mountain Coffee Roasters, however, was the best performing stock of the last decade and long-term shareholders are still doing ok, albeit not as well as when the stock was above $100.00. Despite the recent plunge in GMCR, the stock is still up 1,270% over the last 10 years.

Posted-In: Earnings News Guidance Intraday Update Movers

 

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