Bitter forecast from Green Mountain
Created: 2012-05-03 14:22 EST
Green Mountain plunged nearly 50 percent by midday, after it badly missed its sales estimates and slashed its full-year forecast. The maker of Keurig coffee brewers forecast slower growth after demand for its single K-cup coffee refills missed the mark in the 2nd quarter.
Green Mountain had been one of the fastest growing companies in recent years, but faces stiffer competition from rivals including Starbucks and Nestle, and some of its K-cup patents expire in September.
The disappointing forecast is earning scorn on Wall Street where some analysts cut their ratings and questioned the management's credibility.