Starbucks Earnings: Double-Digit Growth Steams Up Shares

Starbucks Corp. (NASDAQ:SBUX) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. Despite the revenue miss, investors are cheering the strong profit growth. Shares are up 0.97%.

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Starbucks Corp. Earnings Cheat Sheet

Results: Net income increased 13.11% to $432.2 million (57 cents per diluted share) in the quarter versus a net gain of $382.1 million in the year-earlier quarter.

Revenue: Rose 10.6% to $3.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starbucks Corp. reported adjusted net income of 57 cents per share. By that measure, the company met the mean analyst estimate of $0.57. It missed the average revenue estimate of $3.84 billion.

Quoting Management: “Record earnings in the first quarter continued our strong momentum, reflecting the underlying strength in our core business,” commented Troy Alstead, CFO…

…We delivered excellent holiday results with 6% global comps, marking the 12th consecutive quarter of comps in excess of 5%. Our first quarter results demonstrate both efficiency, with record US productivity, and innovation, with the successful launch of Verismo, our newest growth platform.”

Key Stats:

Revenue increased 12.96% from $3.36 billion in the previous quarter. Net income increased 20.49% from $358.7 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.48 and has not changed. For the current year, the average estimate has moved up from a profit of $2.13 to a profit of $2.16 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)