Stock Alert for Coffee Holding Co. Inc. (JVA)
  • Small-Cap Stock Spotlight: Agria Gets a Lift on Strong Earnings
  • OTC Stock Alert – Crowne Ventures continues Gains on Smelting Momentum
  • " />

    Coffee Holding Co. Inc. (JVA) Continues Gains after Strong Earnings

    Coffee Holding Co. Inc. (JVA) Continues Gains after Strong Earnings

    Shares in Coffee Holding Co. Inc. (NASDAQ: JVA) added $2.26, or 21.32%, to close Monday at $12.86, stretching Friday’s gains when the company reported its latest quarterly results. Nearly 5.66 million shares exchanged hands during the session, topping the 10-day average of over 700K.

    Staten Island, NY-based Coffee Holding reported net sales of over $56 million for the three months ended January 31, 2012, an increase of 120% from over $25 million reported in the comparable period of the previous year. The sales growth mainly reflects higher sales prices compared to the first quarter of fiscal 2011, and an increase in sales of green coffee, as well as an increase in private label and branded sales, the company said.

    The Company earned nearly $1.58 million, or $0.25 per share basic and $0.24 diluted, for the latest reported quarter, which compares to the previous year’s figure of over $1.04 million, or $0.19 per share (basic and diluted), for the three months ended January 31, 2011. The company said the increase in net income reflects increased gross profit.

    Coffee Holding is an integrated wholesale coffee roaster and dealer in the U.S. and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Its private label and branded coffee products are sold throughout the U.S., Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.

    Commenting on the latest results, Coffee Holding president and CEO Andrew Gordon stated that the company continues to see growth in all areas of its business as continued historically high coffee prices have not affected demand.

    “Increased sales on our flagship brand, Cafe Caribe, have come through new outlets of distribution as four new major supermarket chains have taken on the product since the start of the year. Private label sales continue to grow as well, with consumers looking to save as the economy is still on the mend. In addition green coffee sales increased, as the demand for our high quality Arabicas and Organic coffees remains brisk. Although our margins remain strong, higher increases in sales of green coffee as compared to increases in private label and branded sales have impacted our overall gross margins. That said, we will always take growth as long as it is profitable,” said Gordon.

    Shares of JVA have risen 61.4% in the last five days; 47.1% in the last month; and 182.0% year-to-date.

    Leave a Reply

    Your email address will not be published. Required fields are marked *