Starbucks Shares Surge on Q4 Results, Outlook (SBUX)
Shares of Starbucks Corporation (NASDAQ: SBUX) leaped 7.49% in aftermarket hours on Thursday after the world’s biggest coffee chain raised its outlook on next fiscal year even as it posted better than expected fiscal fourth-quarter earnings bolstered by record sales.
The Seattle-based company upwardly revised its earnings outlook on fiscal 2013 to $2.06-$2.15 a share from earlier estimations of $2.04-$2.14 a share while sales are expected to rise between 10% and 13%.
Analysts’ consensus estimate is for earnings of $2.14 a share.
For the fiscal fourth quarter which ended September 30, Starbucks reported net profit of $359 million, or 46 cents a share, compared to year earlier net earnings of $358.5 million or 47 cents a share, beating analysts’ consensual estimate by a cent.
Revenue during this period leaped 11 percent to a record $3.36 billion, from $3.03 billion, in the corresponding period of last year. Nevertheless, revenue fell short of analysts’ forecast of $3.39 billion.
Same-store-sales, a key gauge on retailer’s performance as it excludes sales impact of those stores that were opened less than a year ago or stores that were closed during the year, increased by 6%, while in Americas it grew by 7%. The solid growth in same-store-sales was attributed to 5% increase in footfalls and 1% gain in average bills.
Commenting over strong quarterly results, Starbuck’s Chief Executive, Howard Schultz said in a statement, “Our Q4 and overall 2012 fiscal year performance demonstrates the strength of our business and brand. The resiliency and relevance of our U.S. retail business, acceleration of the Channel Development business and expansion in Asia all contributed significantly to our strong results.”
Meanwhile, the company said that it will open about 1300 new stores across the world as looks to expand its reach. During the fourth quarter, Starbucks opened 250 new stores around the world, led mainly by its expansion in China, where it opened 132 new stores, compared to 81 stores, opened in fiscal 2011.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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