Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



After Hours Earnings: Tesla Motors Flops, Keurig Green Mountain Pops

Stocks mostly rose today as remarks from Federal Reserve Chairwoman Janet Yellen signaled that the central bank was committed to supporting the economy in its recovery as it continues to taper its bond-buying program. The Dow Jones Industrial Average  (DJINDICES: ^DJI  ) finished up 118 points, or 0.7%, and the S&P 500 finished up 0.6%, though the Nasdaq sank 0.3% on a sell-off in the tech sector. At one point, the tech-heavy index was down as much as 1.5% as Alibaba filed for its IPO, drawing money out of other tech stocks, but rose late in the session to recover most of its losses.

In comments to the Congressional Joint Economic Committee, Yellen said there was still "considerable slack" in the labor market, and that a flattening housing market and geopolitical tensions pose risks to the U.S. economy that warrant the Fed's attention. Stocks rose broadly after her remarks, as she said the economy was on track for solid growth this quarter, and investors were glad to hear that she planned to keep benchmark interest rates near zero in order to boost the economic recovery. 

Among stocks making news after hours was Tesla Motors  (NASDAQ: TSLA  ) , which fell 7.6% after reporting earnings. The electric-vehicle maker actually beat earnings estimates, posting an adjusted per-share profit of $0.12 against $0.10, and revenue grew 27% to $721 million, also beating estimates of $699.1 million. However, the company warned that free cash flow would run slightly negative this year because of starting construction on a lithium-ion battery plant, known as the "Gigafactory." Vehicle deliveries in the quarter of 6,457 were in line with guidance at 6,400, and the company forecast 7,500 vehicles for the current quarter. There seemed to be little in the report to warrant such a sharp sell-off, but the drop may have come from the market's realization that not every quarter will be a blowout for Tesla. At a P/E over 200, the company may need to significantly exceed expectations to move higher.  

Elsewhere, Keurig Green Mountain  (NASDAQ: GMCR  ) shares were heating up, gaining 6.7% in the extended session. The maker of the pod-based coffee brewer said sales grew 10% to $1.1 billion, breezing past estimates at $1.05 billion, as both portion packs and brewer systems showed steady growth. On the bottom line, adjusted earnings per share scooted up 16% to $1.08, easily topping the consensus at $0.94. Looking ahead, the company sees earnings per share of $3.63 to $3.73, though that guidance takes into account a negative impact of $0.20 resulting from share dilution from its recent deals with Coca-Cola and Lavazza, and $0.09 for foreign currency translation. Analysts had expected a profit of $3.72 per share. Though the days of Keurig's skyrocketing growth are gone, the company has proved it can still grow after losing many of its portion-pack patents in 2012. Excitement about the Keurig Cold brewing system and the company's partnership with Coke is likely to keep shares elevated through 2015, when the new system comes out. 

Looking for the next Tesla?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with amazing potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303%! You don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 08, 2014, at 7:47 PM, BentMike wrote:

    Tesla has not flopped, that is just silly. Some stock holders just came to their senses. Musk has been said in the past that people were paying too much for the shares. Tesla is actually doing just fine.

    The shares are now more appropriately priced, though I rather see them even lower where they make more sense. I want it to make more sense.

    I would like to buy some more of Tesla, and high valuations don't always scare me off, but too much is just too much - you can wait for it to come back to you when it is like this. Still waiting.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2948677, ~/Articles/ArticleHandler.aspx, 9/2/2015 6:59:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:35 PM
^DJI $16058.35 Down -469.68 -2.84%
GMCR $55.10 Down -1.50 -2.65%
Keurig Green Mount… CAPS Rating: **
TSLA $238.63 Down -10.43 -4.19%
Tesla Motors CAPS Rating: **
KO $38.75 Down -0.57 -1.45%
Coca-Cola CAPS Rating: ****