NEW YORK (TheStreet) -- Shares of Tim Hortons Inc. (THI) are rising by 7.94% to $59.14 in mid-afternoon trading on Wednesday, after the company reported an increase in diluted earnings per share to C92 cents for the 2014 second quarter, compared to C81 cents per diluted share for the year ago quarter.
Analysts polled by Thomson Reuters expected the company to report earnings of C87 cents per share.
Tim Hortons said earnings per share grew as a result of the company's "strong operating performance, as well as the recent recapitalization and resulting expanded share repurchase program."
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Tim Hortons' revenue grew to C$874.3 million for the 2014 second quarter, from C$800.1 million for the same period last year.
Analysts were expecting revenue of C$843.29 for the quarter.
The Canadian coffee and donut chain's net income for the latest quarter was flat compared to the 2013 second quarter. Tim Hortons posted net income of C$123.8 million versus C$123.7 million year over year.
Separately, TheStreet Ratings team rates TIM HORTONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIM HORTONS INC (THI) a BUY. This is driven by a few notable 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, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."