Keurig Green Mountain Inc, the maker of K-Cup single-serve coffee pods, posted a drop in net income for the fiscal fourth quarter, but topped earnings per share and revenue estimates, sending shares up 20% as the company has sought to cut costs and rebound from recent sales declines of its pods and brewers.
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Net income attributable to Keurig fell to $94.6 million, or 61 cents a share in the fourth quarter ended Sept. 26, from $141.1 million, or 86 cents a share, a year earlier.
When adjusted for items such as restructuring expenses, the company earned 85 cents a share.
Net sales fell to $1.04 billion from $1.20 billion.
Analysts surveyed by Thomson Reuters expected adjusted earnings per share of 70 cents and revenue of $1.03 billion in the quarter.
"I'm particularly pleased with the benefits realized from our cost reduction efforts as well as our strong cash generation, both of which exceeded expectations in the fourth quarter," said Keurig Chief Executive Brian Kelley in a statement.
Keurig said in August that it expects to reduce its workforce by about 5 percent in an effort to cut costs.
Shares rose 20 percent in after-hours trading to $48.70.
The company said that for its fiscal year 2016, it expects sales growth of flat to low single-digits when adjusted for currency and adjusted earnings of $3.25 to $3.45 per share.
(By Anjali Athavaley; Additional reporting by Subrat Patnaik in Bengaluru; Editing by G Crosse and Matthew Lewis)