Starbucks (SBUX) Shares Sell Off Despite Q1 Beat, Solid FY12 Guidance
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Price: $103.99 -0.94%
Financial Fact:
Total operating expenses: 4.59B
Today's EPS Names:
EDXC, BICX, FBPI, More
Financial Fact:
Total operating expenses: 4.59B
Today's EPS Names:
EDXC, BICX, FBPI, More
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Starbucks Corporation (Nasdaq: SBUX) shares are percolating lower following first-quarter numbers and guidance Thursday. The stock is down about 2 percent in late trading.
Revenue for the coffee giant rose 16.4 percent from $2.95 billion in last year's fourth quarter to $3.44 billion. Revenue easily topped Street views calling for $3.29 billion.
Net income popped 10.2 percent to $382.1 million, or 50 cents per share, which edged out expectations for earnings of 49 cents per share.
Global comps jumped 9 percent, with traffic increasing 7 percent and a 2 percent increase in average ticket. Leading the charge was China/Asia-Pacific (CAP), which saw an increase in sales of 20 percent and 15 percent increase in transactions.
Operating margin compressed 0.8 points to 16.2 percent.
"Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our CPG business," said CEO Howard Schultz. "Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead."
Looking ahead, Starbucks raised and narrowed its 2012 earnings outlook from a range of $1.75 to $1.82 issued with the last report to a range of $1.78 to $1.82. The Street is currently looking for EPS of $1.83. On the conference call, an exec said the company is target annual sales growth of about 10 percent.
Revenue for the coffee giant rose 16.4 percent from $2.95 billion in last year's fourth quarter to $3.44 billion. Revenue easily topped Street views calling for $3.29 billion.
Net income popped 10.2 percent to $382.1 million, or 50 cents per share, which edged out expectations for earnings of 49 cents per share.
Global comps jumped 9 percent, with traffic increasing 7 percent and a 2 percent increase in average ticket. Leading the charge was China/Asia-Pacific (CAP), which saw an increase in sales of 20 percent and 15 percent increase in transactions.
Operating margin compressed 0.8 points to 16.2 percent.
"Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our CPG business," said CEO Howard Schultz. "Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead."
Looking ahead, Starbucks raised and narrowed its 2012 earnings outlook from a range of $1.75 to $1.82 issued with the last report to a range of $1.78 to $1.82. The Street is currently looking for EPS of $1.83. On the conference call, an exec said the company is target annual sales growth of about 10 percent.
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