Coffee company Farmer Bros (NASDAQ:FARM) saw its shares surge 54% after reporting its second quarter earnings were better than expected, despite revenue being slightly lower than anticipated.

The coffee roaster and distributor posted adjusted earnings per share of $0.01, which beats analysts estimates of a $0.09% loss per share.

The company report net sales of $90 million for the quarter ending December 31, 2024, which is just below the $90.15 million consensus estimate but up slightly from $89.5 million in the same quarter last year.

Net income for the quarter came in at $210,000, compared to $2.7 million in the prior year period. However, the company noted that last year’s results included a $6.1 million net gain from asset disposals, while this quarter saw a $1.5 million net loss from asset disposals.

“The second quarter was one of our strongest performing quarters in quite some time despite the challenging market environment,” said Farmer Brothers President and CEO John Moore. “We saw continued improvements in sales, operating expenses and adjusted EBITDA, as well as gross margins above 43% for the second straight quarter.”