Starbucks Earnings Beat, but Outlook Falls Short
Starbucks reported quarterly earnings and revenue that beat Wall Street's forecasts on Thursday and raised its full-year guidance although its outlook remains below analysts' expectations.
The coffeehouse chain posted fiscal first-quarter earnings excluding items of 50cents per share, up from 45 cents a share in the year-earlier period.
Net income rose to $382.1 million, or 50 cents per share, from $346.6 million, or 45 cents, a year earlier.
Revenue rose 16 percent to $3.44 billion from $2.95 billion a year ago.
Analysts had expected the company to report earnings excluding items of 49 cents per share on $3.30 billion in revenue.
After the earnings announcement, the company's shares fell 2 percent in extended-hours trading. (Click here to get after-hour quotes for Starbucks.)
Global sales at cafes open at least 13 months jumped 9 percent, helped by an increase in customer visits and spending per transaction. That beat the 7.7 percent gain analysts, on average, expected, according to Thomson Reuters data.
The company raised the bottom end of its projected range for the fiscal year ending in September to a range of $1.78 to $1.82 a share from its earlier estimate of $1.75 to $1.82 a share, but that’s shy of analysts’ expectations of $1.83 a share.
The company recently said it expects high costs for things like coffee, milk and fuel to cut into profits this year.
- Reuters contributed to this article.