Shares of Keurig Green Mountain (GMCR.DL) soared more than 10% after the company posted terrific second-quarter results. The seller of Keurig brewers has been on a terrific run in 2014, and its recent results suggest that it won't be losing momentum any time soon. In addition, Keurig Green Mountain has recently inked key partnerships with the likes of J.M. Smucker (SJM 1.71%) and Coca-Cola (KO 1.29%), which could take the stock to new highs.

  Let's take a look at Keurig Green Mountain's recent results and analyze its prospects.

Solid results and a promising partnership
Keurig Green Mountain posted impressive results, with its quarterly revenue up 10% from last year to $1.1 billion. Furthermore, net income grew to $170 million, a terrific improvement of 21% from last year. Looking ahead, the company has some key partnerships and products in store that will result in improved performance.

Keurig Green Mountain is counting on the success of its Keurig Cold system going forward, which it plans to introduce by 2015. Keurig Green Mountain is of the opinion that the Keurig Cold system will materially expand its addressable market going forward. Preparations are already under way, as Keurig Green Mountain is building a new Keurig Cold production center in Vermont.

In addition, the company is about to decide on the site for its first dedicated commercial Keurig Cold production facility in the Southeastern United States. Also, Keurig Green Mountain has already started commercializing the product. 

The prospects for the Keurig Cold system are quite bright, as Keurig Green Mountain is backed by beverage giant Coca-Cola in this endeavor. Keurig Green Mountain has penned a commercial and strategic deal for a 10-year period with Coca-Cola. As a part of this deal, Coca-Cola purchased a 10% stake in Keurig Green Mountain for $1.2 billion. Coca-Cola will help Keurig Green Mountain by providing access to its beverage brands in the U.S. along with more than 200 countries globally. 

The two companies will collaborate for the next decade to produce Coca-Cola's products in single-serve pods, or K-Cups. These K-Cups will be produced using Keurig Green Mountain's upcoming Keurig Cold system. Through this agreement, Coca-Cola is trying to expand its market by identifying emerging consumer trends and staying ahead of the competition. What's more, Coca-Cola has doubled its advertising budget and will be spending an additional $1 billion in advertising until 2016. 

So, Coca-Cola can be expected to push this product across its markets; and considering its brand equity and reach, Keurig Green Mountain could see an increase in its own addressable market.

Expanding the system
Keurig Green Mountain is optimistic about its extended partnership with J.M. Smucker. The two companies have entered into a multi-year agreement to expand their successful partnership for the manufacturing, marketing, distribution, and sale of the Smucker family of coffee brands. J.M. Smucker's brands such as Folgers, Folgers Gourmet Selections, Cafe Bustelo, and Millstone are sold as Keurig portion packs; now they will work with Keurig Green Mountain's new consumer and commercial brewing systems. 

This agreement will strengthen J.M. Smucker's sales as well. As the Keurig platform has been growing, the introduction of new systems such as Keurig Bolt and Keurig 2.0 brewers will provide J.M. Smucker with an opportunity to sell its coffee products into more channels. 

Apart from these moves, Keurig Green Mountain has introduced Lavazza, a well-known coffee brand from Italy, to the Keurig K-Cup system. In addition, the introduction of the new Keurig 2.0 hot system is expected to provide a boost to the company's business. To drive the adoption of its upcoming brewer system, Keurig Green Mountain will ship each Keurig 2.0 brewer this holiday season with an actual carafe and an assortment of the K-Carafe packs.

Bottom line
Keurig Green Mountain has done really well this year. From an investment point of view, the company looks solid. It has a trailing P/E ratio of 30, while a forward P/E of 26 means that there is earnings growth expected going forward. This view is confirmed by analysts' estimates, which suggest Keurig Green Mountain's earnings will grow at an annual rate of 17% for the next five years. So, with its prospects looking strong and key partnerships to drive growth, Keurig Green Mountain could go higher in the future.