WATERBURY, Vt. (AP) — Shares of Keurig Green Mountain fell in extended trading Wednesday after the maker of single-serve coffee brewing systems reported disappointing fiscal second-quarter results and cut its estimates for the year.
Keurig said sales of its newer Keurig 2.0 system were slower than it expected and said it is working to solve the problem. The company had called for sales growth in the mid- to high-single digits, but now says its annual revenue may increase by a low single-digit percentage and may even be unchanged from fiscal 2014, when it had $4.71 billion in revenue. It also said its adjusted per-share profit will decrease compared to last year.
Shares of Keurig Green Mountain Inc. skidded $10.83, or 10 percent, to $97.24 in aftermarket trading.
Keurig's second-quarter profit fell 4 percent to $155.5 million, or 97 cents per share. The Waterbury, Vermont-based company said it earned $1.03 per share if one-time items are excluded. Its revenue grew 2 percent to $1.13 billion.
Analysts expected income of $1.05 per share and $1.16 billion in revenue, according to Zacks Investment Research. The company's fiscal second quarter ended on March 28.
Keurig shares fell $1.92 to $108.08 during regular trading Wednesday, and they are down 19 percent in 2015.
The company also said former Mead Johnson Nutrition Co. executive Peter Leemputte will be its new chief financial officer. Leemputte was Mead Johnson's CFO for about seven years ending in March, and he will join Keurig on Aug. 17.
The company announced in November that CFO Frances Rathke would step down in fiscal 2015.