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What: Shares of Green Mountain Coffee Roasters (NASDAQ:GMCR) were tasting bitter today, falling as much as 10% after its guidance came in below expectations.
So what: The maker of the Keurig single-cup brewing system said it expected to earn $0.70 to $0.75 per share and $1.01 billion to $1.04 billion in sales in the current quarter. EPS was within range, but analysts were looking for $1.06 billion in sales. Notably, the company soared past earnings estimates, posting profits of $0.76 a share against the pros' $0.65 projection. Only the revenue guidance missed and by just a few percentage points.
Now what: The market still seems jittery from Green Mountain's 2012 collapse when the stock lost 85% of its value caused largely by its K-cups going off patent. Shares had been dearly priced beforehand, but the company has managed to grow steadily despite predictions of its demise. Today's early sell-off seems unreasonable, considering Green Mountain still sees 16% revenue growth this quarter. Clearly, some investors agree as the stock rallied back to just a 5% loss for the day.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.