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Starbucks Q1 Profit Rises 10% (SBUX)

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StarbucksStarbucks Corporation (NASDAQ: SBUX) reported a sharp increasing in profit for the first quarter as on strong sales. However, the company issued a modest forecast for fiscal 2012, sending shares lower in early trading today.

The Seattle-based company posted a 10% increase in profit to $382.1 million, or $0.50 per share for the first quarter ended January 1, 2012. The company’s revenue for the quarter increased to $3.44 billion, driven by growth in all its business plans.


Analysts had forecast the company to report earnings per share of $0.49 on revenue of $3.29 billion for the first quarter.

Starbucks revenue from stores open at least a year jumped 9% as more customers visited its cafes and spent more on each trip. The first quarter turned out to be the company’s most successful holiday season quarter.

Starbucks results for the quarter were also boosted by the addition of 241 new stores. The company now operates 17,244 stores globally, and plans to open another 800 in the coming year.

Although Starbucks reported strong first-quarter results, its shares are down in early trading as investors have been disappointed with the company’s forecast for fiscal 2012. The company said that it expects to earn between $1.78 per share and $1.82 per share in fiscal 2012, which is below Street estimates of $1.83 per share.

Starbucks said that it continues to struggle with higher costs for coffee beans, dairy products and other ingredients. The company expects commodity costs to add up to $230 million in costs in fiscal year 2012.

Starbucks shares fell to an intra-day low of $47.11 in early trading today, and at last check, the stock was down 2.46% to $47.15.

Starbucks shares have gained 42.72% in the last one year, compared with a gain of 1.92% for the Nasdaq.

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edliston
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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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.

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