EMERYVILLE, Calif. (AP) -- Peet's Coffee & Tea Inc. said Tuesday that soaring coffee prices drove its first-quarter profit down nearly 39 percent — and well below analysts' expectations — and its shares tumbled after hours.
The company, based in Emeryville, Calif., said its net income fell to $3.4 million, or 25 cents per share, for the quarter that ended April 1. That's down from $5.5 million, or 41 cents per share, in the same quarter last year.
Analysts polled by FactSet were anticipating earnings of 31 cents per share.
Peet's total revenue rose 7 percent to $94.8 million, while analysts were expecting $96.9 million on average.
"We knew the first half of 2012 would be challenging for us," Patrick O'Dea, president and CEO of Peet's said in a statement.
The company said coffee beans used for roasting were 44 percent more expensive per pound in this year's first quarter than a year earlier. But O'Dea said he expects coffee costs to moderate in the second half of the company's fiscal year.
Coffee companies have struggled over the past few years with massive fluctuations in coffee prices due to supply issues and reported speculation in the markets on the coffee commodity.
The company reported that first-quarter revenue from its coffee shops increased 4 percent to $54.1 million as it sold more drinks, pastries and whole beans, compared with a year earlier. Its specialty revenue rose 12 percent to $40.7 million. That includes grocery sales, which rose 12 percent, sales to foodservice operations and offices, which rose 16 percent, and home delivery sales, which were unchanged from a year earlier.
Peet's stood by its full-year earnings forecast of $1.70 to $1.80 per share; analysts were expecting $1.78 per share. The company anticipates 10 percent higher revenue, which implies roughly $409.1 million; analysts were expecting $409 million for 2012.
Shares of Emeryville, Calif.-based Peet's fell almost 4 percent to $72.40 after hours. Before the earnings report, they closed at $75.23, down $1.59, or 2 percent.