UPDATE 1-Peet's Coffee Q3 beats Street; raises FY EPS outlook

* Q3 EPS $0.28 vs est $0.24

* Q3 revenue $80.2 vs est $80.01 mln

* Sees FY10 adj EPS $1.30 to $1.33 vs prior $1.27-$1.30

Nov 2 (Reuters) - Peet's Coffee & Tea Inc (PEET.O) posted quarterly results that beat market estimates, helped by strong sales growth of its coffee products at retail, and raised its full-year profit outlook.

Peet's, which operates retail stores and also sells its products through retailers such as Safeway Inc (SWY.N), raised its 2010 non-GAAP profit outlook by 3 cents a share to $1.30-$1.33 a share. [ID:nWNAB9180]

The company posted third-quarter net income of $3.8 million, or 28 cents a share, compared with $2.5 million, or 19 cents a share, a year ago.

Revenue rose 9 percent to $80.2 million.

Analysts on average were expecting earnings of 24 cents a share, before special items, on revenue of $80.0 million, according to Thomson Reuters I/B/E/S.

Specialty net revenue, which includes sales through retailers, rose 17 percent to $30.4 million in the quarter.

Shares of the company, which boasts of a loyal following called 'Peetniks,' closed at $39.54 Tuesday on Nasdaq. They are up 13 percent since late September when the company hiked prices of its beans and drinks. (Reporting by Mihir Dalal in Bangalore)