Starbucks (SBUX) beat fiscal Q1 impressions for earnings, revenue and the same store, while lifting the full-year result guidance largely over consensus estimates.
Estimates: Analysts expect Starbucks earnings per capita Stocks will stick to 65 cents, according to Zacks Investment Research. They expect a revenue of 7% to $ 6,485 billion. Overall, the same store sales are counting 3%, according to Consensus Metrix. They are seen swelling 3.3% in America, 2% in EMEA and 1
Results: EPS of 75 cents on revenue of 6.63 billion. Sales of the same store grew 4% in total. America and US comparable store sales increased 4%, with transactions flat. Overall, China / Asia-Pacific quotas grew by 3%, while China compensated by 1%, while EMEA comps died 1%.
Outlook : Whole year EPS is seen at $ 2.68- $ 2.73, up from a previous view of $ 2.61- $ 2.66, with the new midpoint over consensus for $ 2.64 . Revenue is seen growing 5% -7% and repeating previous views, and global comparable sales are seen 3% -4% against a previous outlook on growth near the lower end of a 3% -5% range.
"We are particularly pleased with the sequential improvement in quarterly comparable business transactions in the United States, supported by our digital initiatives and improved implementation of our store experience," said CEO Kevin Johnson.
2% too late after closing 2.5% at 65.74 on the stock market today, dropped back under its 50-day line and almost wiped out the week's gains after saying Tuesday that the delivery service will expand to six major American cities.
Still, Starbucks warehouse is in a flat base with a 69,08 point of sale as part of a base-on-base formation.
Starbucks warehouse has excellent fundamentals that have driven it on the IBD Leaderboard and reflected in its excellent composite rating of 97. The stock has excellent price e-performance, so it has a relatively strong rating of 93.
Analyst Cold On Coffee Stock
Earlier this month, Goldman Sachs analyst Karen Holthouse said she reduced the stock to neutral from purchase on because of "incremental China concerns and valuation." She also cut her price target to 68 from 75.
Holthouse pointed out both Apple (AAPL) and McDonald's (MCD) experience weakness in region.
Rising Local Competition from Chinese Chains like Luckin is another threat to Starbucks earnings, especially as the one-party state rages up nationalist sentiment amidst the on-going trade spit with the United States
"SBUX has more openly recognized the impact of local competition In the region, Luckin has been at the forefront of investor concerns, "the analyst said in a research note. "Press releases about Luckin's growth targets indicate a significantly accelerating threat in 2019 that SBUX's own efforts to deliver may be contrary to counteracting."
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