WATERBURY, Vt. (AP) — Green Mountain Coffee Roasters Inc. shares soared in after-hours trading Wednesday after the company said net income rose 42 percent in its fiscal second quarter, and it raised its earnings forecast for the full year.
Green Mountain said sales of single-serve coffee packs climbed 26 percent compared to a year ago. That balanced a decrease in sales of Keurig brewing systems.
Net income rose to $132.4 million, or 87 cents per share, from $93 million, or 58 cents per share. Excluding one-time charges Green Mountain earned 93 cents per share. Revenue climbed 14 percent, to $1 billion from $855.1 million.
Analysts expected 73 cents per share on revenue of $1.02 billion, according to FactSet.
Green Mountain now expects adjusted income of $3.05 to $3.15 per share in the fiscal year ending in September. Previously it said income would be between $2.72 and $2.82 per share. The company expects lower sales growth, saying revenue will increase 11 to 14 percent to $4.28 billion to $4.4 billion. Green Mountain had forecast growth of 15 to 20 percent, implying a range of $4.44 billion to $4.63 billion.
Analysts estimated net income of $2.82 per share and $4.46 billion in revenue for the year.
The company still expects revenue growth of 15 to 20 percent per year over the long term.
Separately Starbucks said it signed a new five-year contract to make single-serve packs for Keurig brewing machines. The new deal expands the companies' partnership beyond North America. Financial terms were not disclosed.
Shares of Green Mountain Coffee Roasters rose $9.08, or 15.3 percent, to $68.56 in after-hours trading. The stock added 92 cents to close at $59.48 in the regular session.