Keurig Green Mountain (GMCR) jumped 6.4% in early morning trading following a better than expected quarterly earnings report.
Keurig Green Mountain’s net sales were up 9.7% to $1.1 billion, with Thomson Reuters’ polled analysts banking on $1.05 billion.
Via Fox News:
Keurig also said net income rose 22.4 percent to $162.3 million, or $1.03 per share, in its fiscal second quarter ended March 29, from $132.4 million or 87 cents per share a year earlier. Adjusted profit was $1.08 per share, 14 cents better than expected.
The company reiterated its full-year forecast for sales growth in the high single digits on a percentage basis.
The news comes as GMCR announced a partnership expansion with J.M. Smucker to produce and sell Smucker coffee brands such as Folgers that will work with its Keurig cup brewing.
The Keurig machine uses small one-cup packets of coffee for simple household brewing.
“Double-digit sales and earnings growth on the heels of a strong holiday season demonstrates the continued opportunity to grow our Keurig system in North America in a very competitive environment,” Chief Executive Officer Brian Kelley said in the statement.
Keurig Green Mountain credits its growth with an expanded North American customer base and increasing drink pack sales in the last quarter.
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