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Green Mountains

Keurig KO'd and then cradled

David Craig
USA TODAY
Keurig Green Mountain's 2.0 brewer has been met with poor reviews since it was introduced in September. Akshay Jagdale, an analyst with Keybanc Capital Markets Inc. who follows Keurig, said the 2.0 launch was "pretty bad, as bad as it's ever been for a Keurig product."

NEW YORK Wall Street is a tough place, where a stock can go from hero to zero in an instant. Sometimes the 180-degree shift is in the other direction. Take Keurig Green Mountain (GMCR) this week.

Tuesday, the maker of specialty single-serving coffee's stock was a train wreck. The shares dropped 10% to the lowest level since the beginning of 2013 after research reports warned investors to brace for bad news in the company's upcoming earnings report for its fiscal fourth quarter.

Stifel Nicolaus warned that decelerating volume growth and increased competition in Keurig's K-Cup coffee pods and underwhelming results for the Kold cold beverage system would likely cause Keurig's earnings to come in at 65 cents a share for the quarter — 6 cents less than the consensus estimate. Stifel also said Keurig stock's fair value was in the "high $30s'' vs. its previous estimate of $45.

Wedbush Securities also cited weak K-Cup trends when it cut its estimate to 71 cents a share from 74 cents and dropped its price target for the stock to $50 from $60, Benzinga reported.

So what happened when Keurig reported its results Wednesday night after the stock market closed?

Keurig said its earnings, stripping out one-time items, came in at 85 cents a share, blowing away the consensus estimate.

Thursday, Keurig was the best-performing stock in the S&P 500 index, soaring 18% to $47.88.

Remember the old saying about haste making waste?

Follow David Craig @davidgcraig.

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