Keurig Green Mountain Inc., the maker of home-brewing machines for coffee, tea and other beverages, jumped as much as 9.4% in late trading yesterday after its fiscal second-quarter profit topped analysts’ estimates.
Excluding some items, earnings rose 16% 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% 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 high as $100.87 in extended trading after closing at $92.21 in New York. The stock has climbed 22% this year.
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.
Bloomberg
