Peet's 3Q Profit Rises 22 Percent, Outlook Raised

EMERYVILLE, Calif. (AP) — Coffee chain operator Peet's Coffee & Tea Inc. said Tuesday its third-quarter profit rose on higher sales, prompting it to raise 2009 profit guidance.

Shares rose 17 cents to close at $28.27 on Tuesday, and jumped $1.53, or more than 5 percent in after-hours trading on the strong report.

CEO Patrick O'Dea said he was pleased with the quarterly results, crediting a new delivery system, new roasting plant and its store base. He said the company is also looking to grow in other areas, such as its national launch of Godiva flavored coffees.

Emeryville, Calif.-based Peet's earned $2.5 million, or 19 cents per share, in the quarter that ended Sept. 27. That is up from the $2 million, or 15 cents per share, it earned a year earlier.

Revenue rose 8 percent to $73.9 million from $68.5 million, helped by the opening of new retail stores.

The figures beat expectations of analysts polled by Thomson Reuters, who had forecast profit of 16 cents per share on revenue of $71.9 million.

For the year, Peet's said it expects $1.04 to $1.06 per share, up from an earlier prediction of profit of 97 cents to $1 per share. The company also issued new 2010 profit expectations of $1.24 to $1.30 per share.

Analysts have estimated earnings of $1 and $1.16 per share for the 2009 and 2010 fiscal years, respectively.