Green Mountain Coffee Roasters Inc cut its full-year outlook as first-quarter sales of its K-Cup coffee refills fell far below Wall Street expectations, causing the stock to sink 33 percent.
Continue Reading Below
The maker of the popular Keurig coffee brewers said sales of K-Cups rose 59 percent in the second quarter, though this represented a sharp fall from the 115 percent growth seen in the previous quarter.
"After several quarters of robust adoption, we now expect a more moderated growth trajectory going forward for both Keurig brewer and K-Cup pack sales," CEO Lawrence Blanford said in a statement.
Second-quarter net sales rose 37 percent to $885.1 million, but missed estimates of $971.7 million, according to Thomson Reuters I/B/E/S.
The company now expects to earn an adjusted profit of $2.40 per share to $2.50 per share in fiscal 2012, compared with its previous forecast of $2.55 per share to $2.65 per share.
Shares of the company were down $17 at $32.35 in extended trade.