Keurig Green Mountain, Inc. (NASDAQ: GMCR) reported its fiscal fourth quarter financial results after the markets closed on Wednesday. The company had $0.85 in earnings per share (EPS) on $1.04 billion in revenue versus consensus estimates from Thomson Reuters that call for $0.71 in EPS on $1.03 billion in revenue. The same period from the previous year had $0.94 in EPS on $1.20 billion in revenue.

Pod net sales were driven by a 4% decrease in equivalent servings volume and an approximately 6% decrease due to product mix. This was partially offset by a 2% increase due to net price realization. Foreign currency exchange rates negatively impacted pod net sales by roughly 2%.

For the quarter, 1.9 million Keurig hot system brewers were sold including 1.8 million sold by Keurig. Brewer sales were driven by a 20% decrease in sales volume, a 10% decrease due to product mix and an approximately 1% decrease due to net price realization.

Looking ahead to 2016, the company is prioritizing the reinvigoration of its hot system and continuing the disciplined rollout of its Kold system.

The board of directors increased the dividend by 13% in an effort to underscore confidence in future prospects and at the same time continue the track record of delivering strong cash returns to shareholders.

Brian Kelley, President and CEO of Keurig, commented on earnings:

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. 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.

On the books, cash and cash equivalents totaled $89.8 million versus the same period from the previous year that had $761.6 million.

Shares of Keurig closed up 0.9% at $40.50, with a consensus analyst price target of $62.25 and a 52-week trading range of $39.80 to $157.74. Following the release of the earnings report, shares were up 19% at $48.25 in the after-hours trading session.

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