Stock Watch: Keep an Eye on Green Mountain for New Analyst Coverage
Notable Calls — the New York-based blog devoted to stock market news — told investors Thursday to keep an eye on shares of Green Mountain Coffee Roasters (NASDAQ:GMCR), tweeting that the stock was “setting up to be a battleground.” In particular, the blog said to expect a flurry of new analyst coverage.
Shares of the coffee company began dropping after it released its fiscal first quarter results after the market closed on Wednesday. The stock dropped more than 9 percent in after-hours trading, and on Thursday morning shares were down 5.6 percent at $46.20 per share just before noon.
Investors were not put off by the Vermont-based company’s reported profit, which rose 3 percent from the year-ago quarter, but its predictions for future growth were concerning. Green Mountain forecast downbeat sales growth for the current quarter.
“For the remainder of the year, we expect to see continued year-over-year gross-margin improvement due to lower green-coffee costs and ongoing brewer quality improvements,” said Chief Executive Brian P. Kelley in the earnings release. This analysis from the head of the company sounded promising, but he added that growth would slow in its key coffee and espresso maker category…