Keurig Beats FQ3 Views, But Outlook Disappoints

Keurig Green Mountain GMCR fiscal third-quarter earnings beat estimates, but disappointing guidance send the shares down in the extended session Wednesday.

Sales of the company's coffee and coffee makers grew six percent in the recent period, while net income jumped 20 percent. But the company forecast fourth-quarter earnings of $0.68 to $0.75 per share, on sales growth in high-single to low-double digits. Wall Street expected $0.86 per share.

For fiscal 2014, Keurig raised its earnings outlook to $3.71 to $3.78 per share, from its earlier forecast of $3.63 to $3.73. Analysts expect $3.78 per share.

Chief Executive Brian Kelley said coffee maker shipments grew 13 percent in the recent quarter, while coffee-portion packs increased 15 percent.

"We're excited about the imminent launch of our new Keurig 2.0 hot platform and our progress on the new Keurig Cold beverage system," Kelley told investors.

During the recent period, buybacks totaled 1.1 million shares at a cost of $117 million.

Third-quarter earnings grew to $155.2 million or $0.99 per share, from $116.3 million or $0.73 per share a year earlier. Sales rose to $1.02 billion, from $967.1 million.

Wall Street expected $0.88 per share, on sales of $1.05 billion.

Keurig recently traded after-hours at $114.58, down 3.01 percent.