Starbucks (NASDAQ:SBUX) reported record fiscal first-quarter results after the bell on Thursday. Revenues climbed 11 percent on the back of holiday spending (Starbucks gift cards were incredibly popular this season) to $3.8 billion. Earnings grew 14 percent to $0.57 per share, sharpened by a 40 basis-point increase in operating margins to 16.6 percent.
“Starbucks’ strong performance in Q1 demonstrates the strength, and unique resilience, of our increasingly global business, and the power and growing relevance of the Starbucks brand to consumers and communities all around the world,” chief executive Howard Schultz said in the earnings release.
Schultz could be emphasizing resilience given the uncertain nature of the markets right now. Economic headwinds appear to finally be turning around, but it’s still stormy. Growth is never guaranteed, but Starbucks has logged three consecutive years of top- and bottom-line growth after weathering the crisis with no losses.
The stock powered to a high of around $61 in April 2012 before the market began to think the company was overpriced. After a forecast that was revised downward, shares tumbled below $45 before eventually recovering to about $55. In general, though, analysts remain very bullish on the stock partly because of the company’s ability to grow quickly and effectively.