Shares for Green Mountain Coffee Roasters (GMCR) soared over 15 percent in late trading on Wednesday to $68.81 per share, and the activity causing trading to be halted at one point, as the company posted a huge beat on earnings and raised its guidance for the current quarter and full year for the second time.
For the first quarter of 2013, Green Mountain’s profits were $132.4 million, or $0.93 per share (excluding items) on revenue of $1 billion, versus the prior year period during which the company netted $93 million, or $0.58 per share on revenue of $885 million. Not only was this a vast improvement on 2012, but the company flattened consensus earnings-per-share expectations of $0.74.
Furthermore, the company upped its guidance for the current quarter to $0.71 to $0.78 per share, and for the full year to $3.05 to $3.15 per share, after previously raising the forecast to $2.72 to $2.82 per share.
Green Mountain’s 2013 good news came on the same day the company announced the expansion of its partnership with Starbucks Coffee (SBUX) to produce the “K-Cups” for the company’s coffee and Tazo tea brands for the next five years. Major name-brands like Teavana and Seattle’s Best will also be available for Green Mountain’s Kuerig single-cup brewing machines.
The company’s shares ended regular trading up a respectable 1.57 percent to close at $59.48 per share. Meanwhile, shares for Starbucks got a slight afterhours bump of 0.71 percent to $62.85.
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