- Keurig Green Mountain (NASDAQ:GMCR) reports product mix and higher green coffee costs cut into profitability in FQ4, although tight expense control helped the company top profit expectations.
- Portion pack revenue increased fell 9% to $861M.
- Sales of brewers and accessories plunged 32% to $124M during the period. 1.9M Keurig hot system brewers were sold.
- The company's gross margin rate fell 530 bps to 32.3%.
- Non-GAAP operating income rate -170 bps to 19.7%.
- The company says it still has $914M remaining on its buyback allowance.
- Guidance: FY16 EPS of $3.25 to $3.43 is seen vs. $3.42 consensus. Keurig expects free cash flow of $420M to $500M.
- GMCR+19.0% AH to $48.19. Shares were off over 23% over the last week.
- Previously: Keurig Green Mountain beats by $0.14, beats on revenue (Nov. 18 2015)