Keurig Green Mountain (GMCR) Stock Rallies in After-Hours Trading on Earnings Beat

Keurig Green Mountain (GMCR) stock is soaring in after-hours trading after the company reported better than expected financial results for the fiscal 2015 fourth quarter.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Keurig Green Mountain (GMCR) stock is advancing 19.21% to $48.28 in after-hours trading on Wednesday after the company reported financial results that surpassed estimates for the fiscal 2015 fourth quarter.

The beverage company reported earnings of 85 cents per share on revenue of $1.04 billion for the quarter ended September 26.

Analysts had estimated earnings of 71 cents per share on revenue of $1.03 billion for the latest quarter.

However, revenue decreased 13% year-over-year for quarter, driven by a 9% decline in pod sales and a 32% drop in brewing machines and accessories sales.

"I'm particularly pleased with the benefits realized from our cost reduction efforts as well as our strong cash generation, both of which exceeded expectations in the fourth quarter," CEO Brian Kelley said in a statement.

Keurig Green Mountain posted earnings of $3.56 per share for the 2015 fiscal year, beating estimates of $3.42 per share.

Revenue totaled $4.52 billion for the full year, in line with estimates, as the company saw a 1% increase in pod sales with about 10.5 billion equivalent pod servings sold.

Additionally, Keurig Green Mountain's board approved a 13% dividend increase to $1.30 per share, effective February 16.

Separately, TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate KEURIG GREEN MOUNTAIN INC (GMCR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: GMCR

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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