Reuters: Global Markets: Stifel cuts Green Mountain estimates, shares fall

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Stifel cuts Green Mountain estimates, shares fall Jul 13th 2012, 14:35 Fri Jul 13, 2012 10:35am EDT (Reuters) - Stifel Nicolaus cut its earnings estimate for Green Mountain Coffee Roasters Inc (GMCR.O) on Friday, citing increasing competition for single-serve coffee cups for its Keurig machines, and shares of the company fell nearly 8 percent. Stifel analyst Mark Astrachan reduced his earnings estimate for fiscal 2013 to $1.80 per share from $2.27 per share. He also estimated fiscal 2014 earnings of $1.64 per share. Analysts on average were expecting earnings of $2.37 per share for the current year, fiscal 2012, and $3.05 per share for fiscal 3013, according to Thomson Reuters I/B/E/S. Astrachan said his analysis of revenue and profitability for Green Mountain's K-Cups -- the single-serve cups for its Keurig brewers -- shows increasing competition that will pressure pricing, increase promotions and result in market share losses. That will hurt the company's long-term earnings power, he said. "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 down $1.64, or 7.7 percent, at $19.63 on the Nasdaq.

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