WATERBURY, Vt. (AP) -- Green Mountain Coffee Roasters Inc.'s shares soared in after-hours trading Wednesday after the company reported surprisingly strong sales of its Keurig coffee products that drove its fiscal first-quarter profit up to beat expectations.
Its shares soared more than 21 percent in extended trading following the earnings report.
The company's stock had fallen during the past few months on worries about soft Keurig sales and criticism by Greenlight Capital's David Einhorn that the company was overestimating its growth potential, among other major concerns.
Green Mountain said that sales of its single-cup Keurig coffee makers and related products during the holiday season were better than the company had anticipated. Its total revenue doubled, jumping to $1.16 billion from $574.1 million.
The company said it earned $104.4 million, or 66 cents per share, for the quarter that ended Dec. 24 That's up from $2.4 million, or 2 cents per share, in the same quarter last year. After adjusting for acquisition expenses and other items, it earned 60 cents per share versus 18 cents per share last year.
The quarter's results beat the 36 cents per share on revenue of $1.06 billion that analysts polled by FactSet had anticipated.
Green Mountain's CEO Lawrence J. Blanford attributed the strong sales to increased advertising, good positioning in stores and growing awareness of the brand.
"The value of single-serve, at-home brewing seems to be resonating with consumers," Blanford said.
Green Mountain stood by its full-year forecast, saying it expects to earn $2.55 to $2.65 per share for the year on an adjusted basis; analysts expect $2.53. The company also said it expects to earn 60 to 65 cents per share for the second quarter on an adjusted basis; analysts forecast 73 cents per share.
Shares of the Waterbury-based company rose $11.48 to $65.11 in after-hours trading.
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