Keurig Green Mountain Inc. Sinks On Q1 Miss; Weak Outlook

Keurig Green Mountain Inc.

shares fell in Wednesday's extended session after the coffee-machine maker missed first-quarter estimates and offered a disappointing outlook. Shares of the Waterbury, Vermont-based company were off more than 6 percent recently at $113.41 a share. A weaker-than-expected holiday season for brewing machine sales resulted in a revenue disappointment, according to Chief Executive Brian Kelley. Also hurting results was a voluntary recall of certain machines. "These factors are transitory," Kelley said, adding that the company "remains very enthusiastic" about opportunities. But Keurig forecast second-quarter adjusted earnings between $1 and $1.05 a share on revenue growth "in the mid-single digits" from a year earlier. Wall Street expected second-quarter earnings of $1.18 a share on revenue of $1.23 billion. Keurig also posted first-quarter adjusted earnings of $0.88 cents a share, on flat revenue of $1.39 billion. Analysts expected adjusted earnings of $0.89 cents a share, on revenue of $1.47 billion. Net income in the recent period fell 3 percent to $134.6 million, or $0.82 cents a share, from $138.2 million, or $0.91 cents a share.