NEW YORK (TheStreet) -- Shares of Keurig Green Mountain Inc (GMCR) closed down 7.44% to $142.50 on very heavy volume after announcing the resignation of its CFO and a weak current quarter guidance this morning.
The company announced that its CFO and treasurer, Frances Rathke will step down sometime in 2015, Reuters reports.
The coffee maker company also forecast first quarter 2015 profit of between 83 cents to 88 cents per share, lower than estimates of 96 cents per share as the company fights increasing competition from coffee pod makers.
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The company said unfavorable weather patterns in South America pushed coffee prices to record highs this year.
The K-cup maker has tried to expand beyond its core business of single-serve coffee packets, in an effort to stomp out its competition, Reuters added.
About 10.17 million shares of Keurig Green Mountain traded hands today, compared to its average trading volume of about 1.51 million shares a day.
Separately, TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."