U.S. Markets open in 1 hr 2 mins

Green Mtn. profit jumps on stronger Keurig sales

NEW YORK (AP) -- Green Mountain Coffee Roasters Inc. reported a higher quarterly profit that beat Wall Street expectations on Wednesday, as sales of its Keurig brewing machines and coffee pods rose.

The company, based in Waterbury, Vt., also declared a 25-cent dividend and announced a $1 billion share buyback program.

Green Mountain makes single-serve brewing machines that have gained popularity in recent years. During the quarter, the company said it sold 2.6 million machines, up from 2 million in the previous quarter. Sales of its portion packs rose 23 percent from a year ago, as stronger volume was somewhat offset by lower prices.

For the three months ended Sept. 28, the company says it earned $127 million, or 83 cents per share. Not including one-time items, it earned 89 cents per share, beating the 75 cents per share Wall Street expected.

A year ago, the company earned $91.9 million, or 58 cents per share.

Revenue rose 11 percent to $1.05 billion, topping the $964.6 million analysts expected.

Looking ahead, Green Mountain says sales growth should be in the high single digits from the previous year, but cautioned that there would be some variability from quarter to quarter because of new products and that growth would be stronger in the second half of the year.

Net income, not including one-time items, is expected to be $3.75 to $3.85 per share. Analysts had forecast $3.78 per share.

The dividend will be paid Feb. 14 to shareholders of record Jan. 17. The stock buyback plan is authorized to take place over the next two years.

Shares of Green Mountain rose $2.47, or 4 percent, to 64.30 in after-hours trading.