Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) late Tuesday reported its fourth quarter results that best market estimates, sending its shares surging 24 percent in after-market trades.
The company earned $91.9 million, or 58 cents per share, for the quarter that ended Sept. 29. That's up from $75.4 million, or 47 cents per share, earned in its first quarter last year.
After adjusting for costs related to a regulatory inquiry the company earned 64 cents a share. That was much more than the 48 cents that the analyst polls had predicted.
Green Mountain's total revenue increased 33 percent to $946.7 million from $711.9 million on stronger sales and price increases for its single-serve coffee packs. Analysts were expecting revenue of $902.7 million.
The company has been struggling a little bit in recent years with competition as well as a regulatory probe into its accounting practices that slowed down decision making.
But it hired a new boss recently, added new brewer models and introduced more single-serve coffee packages that has been its USP.
The company's revenues from sales of its brewers and accessories rose 45 percent on year while revenues from its single-serve packs rose by nearly two-thirds, though royalty revenues fell.
President and CEO Lawrence Blanford said that the strong quarter speaks to the company's "continued strategic progress." He said the company's management team also believes it points to the significant opportunity still ahead for the company.
For the current quarter, the company expects to earn 62 to 67 cents per share. It said its sales would increase 14 to 18 percent over the same period in its prior fiscal year. That calculates to a revenue forecast of $1.32 billion to $1.37 billion.
Analysts had forecast earnings of 57 cents per share on revenue of $1.28 billion