Starbucks Results Beat Estimates but Outlook Weak
Starbucksreported sales and a profit that topped what analysts were expecting, but shares slipped in extended trading after the company provided a disappointing outlook for the full fiscal year.
The coffee chain reported fiscal first quarter earnings of 45 cents a share. Starbucks earned 33 cents a share during the same period a year earlier.
Sales for the most recent quarter rose to $2.95 billion, up from $2.72 billion last year.
The company was seen earning 39 cents a share on revenue of $2.93 billion, according to a consensus estimate from Thomson Reuters.
However, Starbucks narrowed its profit guidance for its full fiscal year to between $1.43 a share to $1.47 a share, excluding one-time items, well short of the $1.75 a share that 22 analysts who follow the company had expected, according to Thomson Reuters.
Shares of Starbucks dipped more than 2 percent in extended trading Wednesday.
"This is the strongest record quarter we've ever had in the history of the company and the strongest Chrsitmas, highlighted by Christmas blend and Via in the U.S.," Howard Schultz, CEO of Starbucks told CNBC.
Schultz also emphasized the importance of expanding into the emerging markets.
"We believe over time, there will be thousands of stores in China, but we're not going to make the mistakes we made in the past and just grow for growth's sake—it will be highly disciplined, but highly profitable," he explained. "We also just announced our strategic relationship with India."
The stock closed at $33.07 in the regular New York Stock Exchange session. Volume exceeded 14 million shares before the closing bell. Get after-hour quotes for Starbucks here.