Keurig Green Mountain jumped by nearly 20% in after-hours trading on Wednesday after the company reported fiscal fourth-quarter results that included beating analysts expectations, while issuing a higher dividend.
Keurig shares have plummeted by more than 60% in 2015 as the company failed to meet sales expectations for its popular drink products.
The company reported a 13% drop in net sales to $1.04 billion during the quarter, although it beat analysts expectations of $1.03 billion.
Earnings per share came in at $0.85, far above the estimate for $0.70.
The company’s board also authorized a 13% increase in dividend payments.
Keurig has been working quickly to fix its slumping sales issues. Earlier in the year it announced plans to layoff works in order to bring costs under control.
“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,” CEO Brian Kelley said in the earnings statement.
“While we expect marketplace conditions will remain challenging in the near term, we have a stronger product line-up and price positioning as we enter the new holiday season,” he added.
Next up for the company is Keurig Kold, a single-serve brewer for beverages, including sodas and iced tea.
The company sold 2 million Keurig brewers during the quarter.
Here’s a look at Keurig’s wild stock price ride.