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.
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Starbucks jumped 3.3% to $ 67.1
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