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Starbucks crushes earnings and raises guidance (SBUX)



 starbucks ceo kevin johnson Associated Press / Richard Drew

  • Starbucks beat on both the top and bottom lines.
  • The company also raised its full-year earnings guidance.
  • Ahead of the results, USB analyst Dennis Geiger noted two primary focuses for the coffee giant's earnings – whether its US sales momentum was maintained, and whether it could deliver strong China results amid fierce local competitions.
  • Watch Starbucks trade live

Starbucks jumped 3.3% to $ 67.1

4 a share late Thursday after reporting strong first quarter earnings and raising full-year guidance

Here are the key numbers, compared to what analysts were expecting , according to Bloomberg:

  • Adjusted earnings per share: $ 0.75 ($ 0.65 expected)
  • Global comparable sales: + 4% (+ 3% expected)
  • China comparable sales: + 1%
  • Revenue: $ 6.6 trillion ($ 6.49 billion expected)
  • Full-year guidance for adjusted EPS: $ 2.68- $ 2.73, up from $ 2.61-2.66 ($ 2.65 expected)
  • Full year guidance global comparable sales: 3% -4% (Stabucks previously expected the lower end of 3% -5%)

"Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline, "CEO Kevin Johnson said in a pres s release.

"Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the U.S. and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé and increasing shareholder returns.

Ahead of the results, UBS analyst Dennis Geiger noted two primary focuses for the coffee giant's earnings – whether its US comparable to sales momentum was followed by last quarter's 4% growth, and whether it could deliver strong China results amid fierce local competitions.

"We model 4% F1Q Americas sss vs. Consensus 3.3%, including 4% ticket & flat traffic," said Geiger in a note out on Tuesday.

"China expects lower following LT guidance for 1-3 % sss, & we model 1% CAP (China-Asia Pacific) segment sss given recent headwinds. With shares up ~ 30% since June, investor sentiment has turned more negative. 4% sss, China comps stay positive, & EPS can exceed + 10% LT & position SBUX as still one of the highest quality growth companies in large-cap consumer. "

Geiger had a" buy "rating and $ 72 price target – 10% above where shares were trading Thursday

Starbucks was up 7% in the past year

 SBUX MI


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