While Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported earnings today that beat consensus estimates on lower costs and strong sales of its increasingly popular single-serve K-cups, the stock is presently getting pummelled in after-hours trading.

Scalding Hot Green Mountain Coffee Goes Cold In After Hours Trading

Green Mountain serves up strong sales

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported fiscal third-quarter income 59%, above last year’s $73.3 million mark when it reported $116.4 million at the close of the market today.

Excluding items, earnings for the quarter were $0.82 per share. This number is up from the year-over-year quarter when it reported earnings of $0.52 per share and beat the consensus estimate of $0.77 per share.

Lighter than expected revenue is, however, driving the share price down at present. The company posted an 11 percent rise in sales to $967.1 million from $869.2 million a year earlier, largely owing to weak sales in Canada. Analysts had expected sales of $981 million for the quarter.

Sales of coffee brewers and accessories were down 4 percent while other products and royalties were down 11% from the last quarter. Thankfully, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) countered this decline from the last quarter by bringing in $751.7 million for the quarter with its single-serve K-Cups, an increase of 18%.

Green Mountain filters choices due to loss of K-Cup patent perks

So far, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has fought a mighty battle with its competition since its K-Cup patents expired eleven months ago. This was an area of contention for investors and analysts, many of which believed that Green Mountain would not be able to grow given the influx in the single-serve coffee industry.

For the fourth quarter, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) sees an 11 percent to 15 percent rise in sales and earnings per share of 69 cents to 74 cents per share. Analysts were looking for 72 cents per share, according to Thomson Reuters.

After losing $2.06 in today’s trading, or 2.56 percent; after-hours trading has further added to these losses with Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) presently trading down an additional $4.77 or 6.02% since the earnings announcement less than an hour ago.