Keurig Green Mountain, Inc. (GMCR) saw a big move last session, as the company’s shares fell by nearly 30% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This reverses the recent trend for GMCR as the stock has gained around 7% till Aug 4 from Jul 7.
On Aug 5, 2015, Keurig Green Mountain reported disappointing third-quarter fiscal 2015 results. Although earnings marginally beat expectations, sales missed the same by a significant margin. Moreover, Keurig Green Mountain lowered the fiscal 2015 guidance following the dismal results.
This slump shouldn’t be too much of a surprise to investors, as the beverage company has seen 3 negative revisions in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
GMCR currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the retail sector is Coca-Cola Enterprises Inc. (CCE), which currently carries a Zacks Rank #2 (Buy).
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