Advertisement
YOU ARE HERE: LAT HomeCollections

Green Mountain stock plunges 48%

May 03, 2012|By Walter Hamilton
  • Green Mountain's Keurig coffee maker. The company's stock lost almost half its value after disappointing second-quarter results.
Green Mountain's Keurig coffee maker. The company's stock… (Toby Talbot / Associated…)

Green Mountain Coffee Roasters Inc. lost almost half its stock-market value Thursday after disappointing second-quarter results heightened concerns about the company’s growth prospects.

Shares of the onetime market darling slumped 48%, sinking to $25.87. Green Mountain, which makes single-serve Keurig coffee machines and K-Cup coffee packs, traded at nearly $112 last September.

After the close of trading Wednesday, Green Mountain reported sales that were far short of expectations: $885.1 million, compared with the consensus estimate of $971.7 million. Its profit margins declined sharply, and it reduced its annual earnings estimate to $2.40 a share from $2.50.

“After several quarters of robust adoption, we now expect a more moderated growth trajectory going forward for both Keurig’s brewer and K-Cup pack sales,” the company said in its earnings release.

The performance intensified criticism from investors who have raised questions about the company’s growth potential and accounting practices. A prominent hedge-fund manger gave a 110-page slide show last year raising doubts about Green Mountain.

ALSO:

Carlyle Group IPO begins without a pop

U.S. healthcare costs the most but isn't the best: Report

Analyst: Wells Fargo's 34% mortgage share troubles regulators

Advertisement
Los Angeles Times Articles
|
|
|