Keurig Green Mountain Shares Jump as Earnings Beat EstimatesNick Turner
Keurig Green Mountain Inc., the maker of home-brewing machines for coffee, tea and other beverages, jumped the most in more than three months after its fiscal second-quarter profit topped analysts’ estimates.
Excluding some items, earnings rose 16 percent to $1.08 a share in the period, which ended March 29, the Waterbury, Vermont-based company said in a statement. Analysts had projected 94 cents on average, according to data compiled by Bloomberg.
The company expanded its base of North American customers last quarter and sold more drink packs to current users, Chief Executive Officer Brian Kelley said in the statement. Total sales climbed 10 percent to $1.1 billion in the period.
“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,” he said in the statement.
The shares climbed as much as 17 percent to $108.22 today in New York, marking the biggest intraday gain since Feb. 6. The stock had increased 22 percent this year through yesterday, outpacing a 1.6 percent rise for the Standard & Poor’s 500 Index.
The company yesterday also expanded on its J.M. Smucker Co. partnership, which lets customers brew Folgers and Millstone coffees on their Keurig machines. The multiyear accord extends a 2010 deal between the two companies.