California Pizza Third Quarter Profit Forecast Weak

According to a news report from reuters.com, “California Pizza Kitchen Inc (CPKI.O) forecast third-quarter earnings slightly below Wall Street estimates, blaming persistently weak industry conditions.”

“The company posted a second-quarter profit on Thursday in line with expectations, as it continued to cut costs to offset waning revenue, as the recession discouraged eating out. Shares in the company held steady in very light trade after-hours. For the third quarter, California Pizza Kitchen forecast company-owned restaurant sales down 6.5 to 7.5 percent and earnings per share of 19 to 21 cents — below analysts’ average expectation of earnings of 23 cents per share, according to Reuters Estimates.The company posted a second-quarter net income of $6.1 million, or 25 cents a share, compared with $6.6 million, or 26 cents per diluted share, a year earlier. Total revenue fell 3.2 percent to $170.9 million,”” the story said.