Keurig stock dives after sales of pods, brewing machines fall

Stock in Keurig Green Mountain fell more the 25 per cent in after hours trading after the company reported a decline in sales for both coffee pods and home brewing machines.

The company reported a 27 per cent decline in earnings in the third quarter, with net income falling to $113.6 million US, or 73 cents a share, versus $155.2 million, or 92 cents a year ago.

Earnings adjusted for one-time costs were 79 cents, topping average analyst estimates by a penny, according to FactSet.

The company said revenue was $969.5 million, down 5 per cent on the year.

CEO Brian Kelley said he was "not pleased" with the growth, but was happy that adjusted earnings came in at the high-end of the company's guidance.

The company said it planned to cut its workforce by five per cent and announced a $1 billion stock buyback program.