Green Mountain Cuts 2012 Outlook Shares Plunge!
Green Mountain Cuts 2012 Outlook Shares Plunge! The coffee company posted 64 cents of EPS, a penny better than expectations. Revenue of $885 million missed expectations for $972 million. The company also cut its 2012 earnings and sales guidance, as its K-Cup and Keurig sales growth decelerates. Full-year EPS is expected to be $2.40 to $2.50, down from its prior projection of $2.55 to $2.65.
Shares dropped in "after hours trading" down to $30.05 well off the "intraday" high of $50.50. The bull has been taking to the woodshed and we'll see at what level fund managers buy the dip.
The company disclosed falling margins, along with lower than expected demand for K-cups and rising coffee prices; they also cut its guidance. The stock was initially halted. The stock peaked at $115 late last year year, around the time activist hedge-fund manager David Einhorn made his big bet against the company.
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