Keurig Green Mountain released the earnings results from its second fiscal quarter tonight after closing bell. The company posted non-GAAP earnings of $1.03 per share on net sales of $1.127 billion, a 2% year over year increase.
Analysts had been looking for earnings of $1.05 per share on sales of $1.15 billion for the company’s second fiscal quarter. In the same quarter last year, the coffee machine maker posted earnings of $1.08 per share on $1.1 billion in revenue.
Key metrics from Keurig Green Mountain’s earnings report
Keurig’s GAAP earnings were 97 cents per share, a 6% decline from last year. The brewing system maker reported $956.6 million in sales of pods, an increase of 7% from last year. It sold $106.4 million worth of brewers and accessories, clocking a 23% decline in brewer and accessory sales year over year.
Keurig Green Mountain also reduced its guidance in the wake of slower than expected adoption of its new Keurig 2.0 brewer system. The company expects net sales growth to be flat or up in the low single digits for this year. It expects a mid-single digit decline in non-GAAP earnings per share. For the third fiscal quarter, Keurig Green Mountain expects flat to low-single digit increase in net sales growth and non-GAAP earnings of between 75 cents and 80 cents per share.
‘Although we are lowering our guidance to reflect the impact of near-term challenges related to this complex product transition, we remain highly confident in our long term strategy for the Keurig hot system and continue to believe there is a significant runway of opportunity,” said Keurig Green Mountain President and CEO Brian Kelley in a statement. “Combined with the upcoming launch of our Keurig KOLD system, we expect the Keurig brand to further expand and globalize while continuing to transform the premium home beverage experience for consumers.”
Keurig Green Mountain halted for news
Also tonight, shares of Keurig Green Mountain were halted temporarily for the release of news. The company announced that it named Peter G. Leemputte as its new chief financial officer. He will take up the post as of August 17. Current Chief Financial Officer Fran Rathke will become senior advisor to the CEO and remain with the company through September.