Keurig shares surge 20% after per share earnings fall less than expected

Shares in Keurig Green Mountain Inc (O:GMCR) surged as much as 20% in after-hours trading in spite of sharp revenue declines, as the prominent coffeemaker's adjusted earnings decreased less than expected over its fourth quarter of Fiscal Year 2015.Keurig has seen nearly two-thirds of its market cap disappear over the last 12 months, amid disappointing sales among its single-serve pod makers and accessories. The subdued growth was reflected in the fourth quarter, as Keurig's revenue excluding currency translation dipped by 11% to $1.04 billion. At the same time, sales in the company's single-serve pods slumped 9% to $861.2 million.As a result, Keurig reported fourth quarter earnings of $94.6 million or 0.61 per share, down considerably from net profits of $141.1 million or 0.86 per share last year during the same quarter. Excluding restructuring costs, the company finished with adjusted per share profits of 0.85, above projections between 0.70 and 0.75."Our results for the quarter and the year reflect the competitive and dynamic marketplace in which we operate as well as the steps we are taking to position our Company for longer-term growth and value creation," said Brian Kelley, Keurig's President and CEO. "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. 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."Keurig hopes to receive a boost from Wednesday's launch of two cocktail mixers for its new cold delivery system. In addition, Keurig announced that its Board of Directors authorized an increase of its annual dividend to 1.30 per share, effective in February."Our priorities for 2016 are to reinvigorate our hot system and continue the disciplined rollout of our Kold system," Kelley added. "We remain confident that our investments in the business and our multi-year productivity program will deliver long-term value to shareholders. Today's announcement of the Board's authorization of a 13% increase in our dividend underscores our confidence in our future prospects and continues our track record of delivering strong cash returns to our shareholders."Shares in Keurig surged 7.07 or 17.46% to 47.57 in after-hours trading.