NEW YORK (TheStreet) -- Keurig Green Mountain (GMCR) stock is moving higher on Thursday after the company reported better-than-expected earnings and revenue in its second quarter and on the news it had expanded its partnership with J.M. Smucker (SJM).
The company, formerly known as Green Mountain Coffee Roasters, reported its second quarter after the bell Wednesday. Earnings of $1.08 a share were well over estimates for 94 cents a share, according to analysts surveyed by Thomson Reuters. Revenue climbed nearly 10% year over year $1.1 billion. Analysts expected $1.04 billion in sales.
Keurig which specializes in homemade coffee said sales of single-serve pods climbed 13%, accounting for over 81% of total revenue. The sale of brewers and other equipment increased 8.5%.
Separately, the company said it had expanded its partnership with J.M. Smucker by signing a multi-year agreement to provide Folgers and other Smuckers-branded coffee cups specially made for Keurig systems. That deal follows a 10-year partnership announced in February with Coca-Cola (KO) to develop a homemade soda machine.
TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: GMCR Ratings Report