For four consecutive quarters now, earnings at Peet's Coffee & Tea
What's more, with Peet's trailing price-to-earnings ratio of 47 and the high-growth projections baked into the current price, merely meeting expectations isn't always enough to move the stock price forward. As a result, Peet's shares have fallen 12% over the past 52 weeks.
Here are some of the highlights from the earnings report:
- Net income was $1.8 million, up slightly from the second quarter of 2006.
- Sales came in at $60.1 million, up 21% over last year's figures.
- Quarterly earnings per share of $0.13 met analyst expectations.
On the bright side, grocery sales for Peet's products in stores such as Safeway
You gotta pay to play
Peet's isn't alone in its struggles to move the bottom line forward. Higher coffee and milk prices have hurt coffee purveyors across the country -- Starbucks
That means investors in coffee stocks -- including Starbucks, Caribou, and yes, Peet's -- should pay especially close attention to milk prices, as well as how the management teams at those companies handle adverse commodity prices down the road.
For more smooth, slow-roasted goodness, check out:
Fool contributor Todd Wenning owns shares of Starbucks, but holds no financial position in any other stocks mentioned. He's still enjoying his bag of Peet's "holiday roast" from Christmas. The Fool's disclosure policy is all-natural.