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

Shares of Green Mountain Coffee Roasters 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 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.