Green Mountain Coffee Roasters (UNKNOWN:GMCR.DL) reported better-than-expected fourth-quarter and full-year earnings after the bell on Wednesday. The specialty coffee company posted a profit of $0.83 per share for its fourth quarter, which was markedly higher than analyst estimates for earnings per share of $0.75 in the period. Revenue also topped expectations coming in at a cool $1 billion. The Street was looking for quarterly revenue of $964.5 million.
For fiscal 2013, Green Mountain delivered a full-year profit of $3.16 per share on revenue of $4.4 billion. That represents 16% annual revenue growth from the year-ago period. Additionally, the company continued to see strong sales of its K-Cups, with revenue from portion packs climbing 18% year over year. Along with its quarterly results, Green Mountain declared a quarterly dividend of $0.25 per share and approved up to $1 billion in share repurchases over the next two years.
Known for its Keurig brewing system, Green Mountain's stock is up more than 48% year to date. However, the future may still be challenging for the company as competition heats up in the single-serve market. If you remember, Green Mountain said goodbye to some key patents on its popular K-Cup technology last year. As a result, grocery store chains are increasingly entering the market with their own private-label single-serve pods. This could significantly erode Green Mountain's market share going forward.
Fool contributor Tamara Rutter has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.