Starbucks Earnings Meet Estimates, Guidance Misses
Starbucks reported fiscal second-quarter earnings that met analysts' expectations on Thursday as the company recorded record revenue. The shares fell in after-hours trading after disappointing third-quarter guidance.
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The global coffee retailer said earnings excluding items rose to 48 cents per share from 40 cents per share in the year-earlier period.
Starbucks' revenue rose 11 percent to a record $3.6 billion from $3.20 billion a year ago.
Analysts had expected the company to report earnings excluding items of 48 cents per share on revenue of $3.59 billion, according to a consensus estimate from Thomson Reuters.
Global comparable store sales grew 6 percent, driven by a 4-percent increase in traffic and a 2-percent increase in average ticket. Same-store sales grew 6 percent in the Americas and 7 percent in the U.S. Same-stores sales in the China-Asia-Pacific region grew 8 percent and same-store sales in Europe fell 2 percent.
"Any way you look at the quarter it was a stunning quarter," CEO Howard Schultz told CNBC. "The highlight of the quarter was 7 percent comps in the U.S. business. If you look at others that are reporting you're looking at 0-2 percent."
The company's strong showing in the U.S., its largest market, was a much-needed bullish sign for Starbucks, as it faces increased scrutiny from U.K. officials over its low tax rates in Britain.
Some analysts expressed disappointment in the company's same store sales growth for the quarter, noting that the 6 percent growth rate remained unchanged from the previous quarter—signaling a lack of real acceleration.
For the third quarter, Starbucks expects earnings to be between 50 and 53 cents a share vs. expectations of 54 cents. It expects fourth-quarter earnings to be between 54 and 57 cents a share vs. 57 cents estimate.
This story was updated to reflect that same-store sales grew 6 percent in the Americas and 7 percent in the U.S.