Friday, July 13, 2012

Stifel Cuts Green Mountain (Nasdaq: GMCR) estimates, shares fall

Stifel Cuts Green Mountain (Nasdaq: GMCR) estimates, shares fallNorthern, WI 7/13/12 (StreetBeat) – Green Mountain (Nasdaq: GMCR) shares fall as Stifel analyst Mark Astrachan cuts its earnings estimate for the company. He reduced the earnings estimate for fiscal 2013 to $1.80 pre share from $2.27.

Green Mountain has been experiencing increased competition for single-serve coffee cups for its Keurig machines. This competition puts pressure on its pricing and forces GMCR to increase promotions, which ultimately results in decreased long-term earnings power and market share losses.

"A few pennies of reduced pricing has a meaningfully negative impact on earnings, assuming now material change in input costs," Astrachan wrote in his research note.

Green Mountain shares were trading down $1.60, or 7.5%, at $19.67 on the Nasdaq Friday.

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