Green Mountain Coffee Roasters announced first quarter earnings of $0.60 on revenue of $1.158 billion, handily topping analyst estimates.
Sales at the company grew more than 102 per cent, during the first quarter.
Analysts polled by Bloomberg expected earnings per share of $0.36 on top line results of $1.06 billion.
“We believe our sales in the period were, in part, the result of our efforts to ensure strong in-stock positions on store shelves as well as due to growing awareness of the Keurig brand which was aided by our nationwide advertising and strong in-store merchandising,” Green Mountain CEO Lawrence Blanford said.
The company has been expanding aggressively through K-Cup deals with brands like Starbucks and Dunkin Brands. During Starbucks’ first quarter report, it said it shipped more than 100 million K-Cups during the quarter.
Green Mountain sold four million Keurig brand brewers over the three months ending December 24, 2011, and said K-Cup pack sales surged 115 per cent to $715 million in value.
Inventories also moderated during the quarter, after rising precipitously over 2011. The company faced spoilage issues when it held coffee at warehouses for too long before shipping. At the end of the period, the company listed $607 million in inventories, down from $672 million in September.
The K-Cup producer guided for second quarter earnings below Wall Street estimates, however. Green Mountain said it expected second quarter earnings, excluding any acquisition costs, to be between $0.60 and $0.65. Analysts predicted second quarter guidance at $0.73 with revenue of $1.03 billion.
Shares are up 12 per cent in after hours trading, but remain far from their peak in September when it topped $110 a share.
Much of that decline was spurred by a report from Greenlight Capital manager David Einhorn, that called into question the legitimacy of the company’s quarterly reports and speculated on possible wrong doing by executives.