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Green Mountain Coffee soars, extends Starbucks deal

8:37 PM, May 8, 2013   |    comments
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Green Mountain Coffee Roasters and Groupon are giving investors even more to cheer for after stocks already ended the day at new closing highs.

Shares of both of companies soared more than 10% in after-hours trading as investors saw things they liked in their quarterly earnings reports and Green Mountain struck a key deal with Starbucks.

Shares of Green Mountain Coffee Roasters were up nearly 11% in after-hours trading, following its gain of 92 cents to $59.48 in regular trading. The company behind the dominant Keurig single-cup coffee makers reported 14% higher revenue of $1.0 billion. The company's net income soared 42% to $132.4 million or 93 cents a share on an adjusted basis. That profit topped analysts' expectations by 27%.

Perhaps more important, though, Green Mountain said it's extending a partnership with Starbucks to sell and distribute cups that work in the Keurig system carrying the Starbucks and Tazo brands. The partnership is designed to further push the companies into fast-growing international markets.

Meanwhile, struggling online coupon site Groupon cooled some investors' fears after reporting 7.5% higher revenue of $601.4 million, topping expectations. The company's revenue in North America rose 42.3%. The company, though, again reported a loss of $4.0 million, wider than the $11.7 million it lost in the same year-ago period.

Given the sluggish growth of the economy, investors have been craving companies showing revenue growth. So far, companies have reported just 1.4% revenue growth in the first quarter, says S&P Capital IQ. Most of the 5.0% earnings growth during the quarter has been coming from stock buybacks and cost cutting.

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