Business

Keurig stock dives after sales of pods, brewing machines fall

Stock in Keurig Green Mountain fell more the 25 per cent in after hours trading after the company reported a decline in sales for both coffee pods and home brewing machines.

Company looking at layoffs after profit falls 27% in 3rd quarter

Keurig says pod sales fell one per cent in the past year and its new home brewing machines saw sales dive 27 per cent. (Joe Raedle/Getty Images)

Stock in Keurig Green Mountain fell more the 25 per cent in after hours trading after the company reported a decline in sales for both coffee pods and home brewing machines.

Pod sales were down one per cent from the year ago quarter, while brewing machines and accessories fell 26 per cent.

The company reported a 27 per cent decline in earnings in the third quarter, with net income falling to $113.6 million US, or 73 cents a share, versus $155.2 million, or 92 cents a year ago.

Earnings adjusted for one-time costs were 79 cents, topping average analyst estimates by a penny, according to FactSet.

The company said revenue was $969.5 million, down 5 per cent on the year.

CEO 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.

The company said it planned to cut its workforce by five per cent and announced a $1 billion stock buyback program.

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