Keurig Cuts Costs, Hikes Dividend -- Market Talk
35 minutes ago - DJNF
16:37 ET - Keurig's (GMCR) net sales decline 13% in fiscal 4Q, but revenue of $1.04B beat analyst expectations and company expects currency-neutral sales growth this year, along with a 13% dividend hike. The maker of single-serve coffee brewers is undergoing a massive cost-cutting program. In F4Q, corporate overhead costs fall 20% mostly due to lower marketing expenses and employee compensation. Analysts have been skeptical about the success of GMCR's new cold-drink machine, saying it's too pricey and bulky and takes too long to make a soda. Uncertainty around Kold helped drive shares down 18% in the past three months. GMCR gains 20% to $48.90 after hours. (annie.gasparro@wsj.com)
(END) Dow Jones Newswires
GMCR quarter report a beat of expectations and announced 13% dividend hike.
