Shares of Green Mountain Coffee Roasters (NASDAQ: GMCR) soared on Thursday, up 24 percent as K-Cup portion packs sales more than doubled in the latest quarter.
GMCR shares closed on Thursday up $12.79, or 23.85 percent, to $66.42.
Shares of the Waterbury, Vt.-based company jumped on active trading after the company reported strong earnings and news that K-Cup portion packs sales were soaring after the market close on Wednesday. Green Mountain Coffee Roasters sells more than 200 varieties of coffee, teas and more in popular K-Cup packaging -- or single-serving sizes -- and the Keurig brewing machines used to make them.
The company is planning to release a next-generation Keurig brewing system this spring.
Green Mountain Coffee Roasters beat expectations on revenues and earnings per share on Wednesday, with strong growth in both areas and margin growth throughout segments. GMCR reported $96 million income for the quarter ending December 24 (Q1) -- a 264 percent increase over the same period the previous year. Revenue also more than doubled in the quarter to $1.16 billion.
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Green Mountain reported it sold more than 4 million Keurig brewing machines in the quarter, fueling optimisim that K-Cup portion pack sales will continue to rise.
The value of single-serve, at-home brewing seems to be resonating with consumers, said Green Mountain CEO Lawrence Blanford, in a statement with the earnings release.
Green Mountain's stock had closed on Wednesday at $53.63 before the earnings announcement and shares jumped in after-hours trading. The momentum held on Thursday throughout the day. The company's stock had been a high-flyer late last year before hedge fund manager David Einhhorn recommended shorting it due to concerns over accounting procedures.
Soon after, Green Mountain shares feel almost 40 percent in one trading day in November 2011 after the company missed analyst expectations in sales for a quarter. GMCR has traded as high as $115.98 in the past 52-weeks, and as low as $37.30. Thursday's close was the highest since the one-day fall in November 2011.