After the closing bell yesterday, Peet’s Coffee & Tea (PEET) reported very good earnings, plus it raised guidance. The company earned 19 cents a share for the third quarter compared with 15 cents a share a year ago. Wall Street was expecting 16 cents a share. The shares are up nicely in today’s trading.
Peet’s also said to expect EPS for this year to range between $1.04 and $1.06 which is an increase from their earlier range of 97 cents to $1. For 2010, they said to expect EPS to come in between $1.24 and $1.30. Wall Street had been expecting $1 for this year and $1.16 for next year so the trend is heading in the right direction. On Portfolio Grader, I currently rate Peet’s “B – Buy.”
I mention Peet’s for two reasons. First, it’s my favorite brand of coffee. Secondly, some of my favorite stocks right now are in the coffee sector. Last week, I highlighted two of my favorite java stocks, Diedrich Coffee (DDRX) and Green Mountain Coffee Roasters (GMCR). How’s this for superior performance? Since the March low, shares of Diedrich are up over 13,000%.