California Pizza Kitchen, Inc. (CPKI) Wednesday raised its its third quarter earnings guidance, despite preliminary results indicating a revenue decline of 5.3%. California Pizza said the increase in earnings guidance was possible due to operational efficiencies and lower tax rate.
The company said its preliminary results indicated that revenues declined 5.3% to $164.8 million from $174.0 million in the previous year. Full service comparable restaurant sales decreased about 8.0% for the quarter, compared to a 2.4% decrease last year.
California Pizza Kitchen now expects earnings in the range of $0.22 - $0.24 per share, as a result of operating efficiencies and a reduced tax rate expected to provide an estimated benefit of about $0.01 for the quarter.
In August, the company had forecast its comparable restaurant sales to decline in the range of 6.5% to 7.5% and third quarter earnings in the range of $0.19 to $0.21 per share.
On average, 17 analysts polled by Thomson Reuters currently expect the company to report earnings of $0.21 per share for the third quarter. Analysts' estimates typically exclude special items.
During the third quarter, the Company also reduced its outstanding debt by an additional $13.0 million totaling a $37.0 million reduction for the year and resulting in a quarter end debt balance of $37.0 million.
The company noted that it intends to release its third quarter earnings on November 5, 2009.
CPKI closed Wednesday's regular trading at $14.02, down 0.38 or 2.64%, on a volume of 0.315 million shares on the Nasdaq. In after hours, the stock gained 0.20 or 1.43%, trading at $14.22.
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