Starbucks (SBUX) Q4 Results Shows Turnaround Gaining Traction (Update)
More News related to SBUX
- Starbucks (SBUX) Bets Big On China
- Notable Analyst Rating Changes 11/23: SBUX, DE, SEED, NDAQ Upgraded; AGU, TRA, CIEN, FL Downgraded
- Jefferies Upgrades Starbucks (SBUX) to Buy, Raises Target to $25
- (RED)(TM) Partners Including Starbucks, Gap and Dell Will Give More to Help Raise Awareness and Funds on World AIDS Day, December 1
- Starbucks Turns (RED) This Holiday Season
(Update with comments from analysts)
Starbucks (Nasdaq: SBUX) profit showed substantial growth in the fourth quarter due to the company's lower costs.
The hot beverage giant reported fourth quarter earnings of 24 cents per share, jumping from the 10 cents per share earned in the same quarter last year. Net profit grew to $150 million from $5.4 million in the year-ago quarter. Earnings beat the analyst estimate by 3 cents.
"Starbucks strong performance in Q4 and fiscal 2009 overall is the result of our successful efforts to improve our customer and partner experiences, the initiatives and innovations we have introduced over the past 18 months and the significant, permanent changes we have made to our cost structure," said Howard Schultz, Chairman, President and CEO of Starbucks.
Net revenue for the company fell by 3.7 percent amid cost cutting initiatives that saw the closing of stores to combat the lower consumer demand during the weak economy.
U.S. comparable store sales declined by 1 percent, marking the eighth straight quarter the company has seen a drop.
Starbucks forecast that the company will see a 15 to 20 percent growth in earning per share in 2010 over the earnings in 2009.
Analyst Comments:
Piper Jaffray reiterated its Overweight rating on Starbucks following the company’s fourth-quarter results.
“The company's new pricing strategy (developed with a third party) is engineered to drive gross margin by retooling prices, both up and down. Ultimately, the value proposition is enhanced which could further strengthen the company's already dominant position,” Piper Jaffray analysts stated.
Based on the results, Piper Jaffray raised its full year earnings estimate to $0.04 to $0.94 and a higher price target of $25.
Shares for Starbubcks are up 6.19 percent to $20.92 in current market movement.
Related Categories
EarningsStocks Mentioned
-0.39Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
