Why Is Farmer Brothers Stock Jumping Premarket?

The coffee roaster and distributor's latest earnings report revealed an improvement in business efficiency.

Shares of Farmer Bros. Co. were up over 5% in premarket trading on Friday, as retail sentiment climbed higher, following the coffee roaster and wholesaler's strong results the previous day.

The company reported adjusted loss of $0.22 per share in its fiscal fourth quarter, unchanged from last year. Two analysts polled by FactSet expected a loss of $0.19 per share. However, gross profit margin expanded significantly to 44.9% from 38.8%, boosting investor confidence.

"We realized substantial operational and financial improvement, including gross margins above 43%, a more than $14 million YoY improvement in adjusted EBITDA, continued decreases in overall SG&A expenses and significantly paid down debt," CEO John Moore said in a statement.

Revenue rose to 85.1 million, up from $84.4 million a year earlier, beating expectations $81.7 million.

Farmer Bros' products include roasted and ground coffee, tea, spices, and other foodservice supplies.

On Stocktwits, the retail sentiment for the microcap stock climbed to 'extremely bullish' as of early Friday, from 'bullish' the previous day.

As of last close, FARM shares are up nealy 30% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<