Keurig Green Mountain shares fell as much as 28% in early trading Thursday after the company reduced its forecast for sales and announced plans for layoffs.
In third-quarter earnings results announced Wednesday evening, the maker of coffee brewers said it now expects a percentage fall in sales in the low- to mid-single digits this year.
During the quarter, adjusted earnings per share came in at $0.80, versus the forecast for $0.78 according to Bloomberg. Sales missed forecasts, at $969.5 million, versus $1.04 billion forecast.
The company also announced that it plans to reduce its workforce by 5%.
CEO Brian Kelley said in the statement, "While we are not pleased with our revenue growth, we delivered earnings at the high end of our previous guidance."
The company's newest machine, called the Keurig 2.0, failed to take off as expected. During the quarter, brewer and accessory net sales fell 26% compared to the prior year.
The stock is down about 59% year-to-date.
