Keurig Stock Falls 25% On Weak Sales, Workforce Cut

Shares of Keurig Green Mountain tumbled more than 25% after the company reported a year-over-year decline in sales for coffee pods and at-home brewing machines. The company reported a 27% year-over-year decline in GAAP earnings, with net income falling to $113.6 million, or 73 cents a share, versus $155.2 million, or 92 cents a year ago. Adjusted for one-time costs, Keurig reported non-GAAP earnings per share of 79 cents, topping average analyst estimates by a penny, according to FactSet. The company reported third-quarter revenue of $969.5 million, down 5% year-over-year and below the $1.04 billion analysts were expecting. The company's chief executive, Brian Kelley, said he was "not pleased" with the growth, but was happy that adjusted earnings came in at the high-end of the company's guidance. Pod sales were down 1% year-over-year, while brewing machines and accessories fell 26%. The company also announced a $1 billion stock buyback program and said it planned to cut 5% of its workforce.