Investing.com -- Shares in Keurig Green Mountain Inc (NASDAQ:GMCR) took a 26% nosedive in after-hours trading, after the Vermont-based coffee company announced the elimination of more than 300 jobs amid poor earnings over its last quarter.
During Keurig Green Mountain's third quarter, which ended in late-June, the company saw its GAAP earnings fall by 27% as sales slumped among its coffee pods and at-home brewing machines. Brewing machine sales, in particular, struggled throughout the quarter – crashing by more than 25% over the 13-week period.
Keurig's net profit for the quarter fell by more than $40 million to $113.6 million or 0.73 per share, down from $155.2 million or 0.94 share during the same period in 2014. Keurig also earned revenues of $969 million for the quarter, below analysts' forecasts of $1.04 billion.
"While we are not pleased with our revenue growth, we delivered earnings at the high end of our previous guidance," Keurig CEO Brian Kelley said in a statement. "We are taking decisive actions to adapt and compete more effectively in today's rapidly-evolving, dynamic marketplace. We are implementing a multi-year productivity program that we are confident will enhance our operational effectiveness and enable us to fund incremental investment in innovation and brand building."
The disappointing sales quarter will force the company to layoff 330 employees or 5% of its staff in an effort to save $300 million.
Keurig's Board of Directors also authorized a $1 billion stock repurchasing plan on Wednesday, which Kelley said underscores the company's commitment to delivering value to their shareholders.
"Going forward, we will continue to maintain a strong, flexible capital structure and balance sheet to enable us to return significant value to our shareholders as we continue to invest in the business," Kelley added. "With innovative technology and a premier beverage brands portfolio, Keurig continues to be a recognized leader in the industry and we are confident we will continue our legacy of delivering innovative products for the benefit of all Keurig constituents."
Shares in Keurig Green Mountain plunged 20.04 or 26.73% to 54.94 in after-hours trading.