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Starbucks Jumps on Lifted Guidance, Strong Q3 Results (SBUX)

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Starbucks (NASDAQ: SBUX) released its fiscal third-quarter earnings results after the closing bell on Thursday.

The company reported earnings per share and revenue that came in slightly ahead of Wall Street estimates. Starbucks also lifted its full-year EPS guidance and provided earnings guidance for the fiscal fourth-quarter that was ahead of current estimates.

In late trade, the stock was last up better than 6 percent to $72.48.

Management Commentary

“Starbucks Q3 results represent the best across-the-board third-quarter performance in our 42-year history,” said Howard Schultz, chairman, president and ceo. "Our more than 19,000 store global footprint, our fast-growing CPG presence and our best-in-class digital, card, loyalty and mobile capabilities are creating a 'flywheel' effect elevating the relevancy of all things Starbucks, and driving profitability.”

Related: Thursday's market wrap - Facebook soars; SAC Capital indicted.

Fiscal Q3 Financial Results

Starbucks reported net income of $417.8 million or $0.55 per share, compared to $333.1 million or $0.43 per share, in last year's corresponding period. This came in ahead of Wall Street consensus EPS estimates of $0.53.

Revenue in the quarter was up 13 percent to $3.74 billion from $3.30 billion last year. This also beat analysts' estimates of $3.72 billion.

Global same-store sales, a key metric for the company, were up by 8 percent and traffic growth increased by 7 percent.

Fiscal Q4 and Full-Year Guidance

The company said that it expects EPS of between $0.59 and $0.60 in the fourth-quarter. Currently, Wall Street is modelling Q4 EPS of $0.57 for Starbucks.

Full-year fiscal 2013 EPS is now expected to be between $2.22 and $2.23 compared to previous guidance of $2.12 to $2.18. Currently, analysts have consensus fiscal 2013 EPS estimates of $2.19.

Looking ahead to fiscal 2014, Starbucks said that it expects revenue growth of 10 percent to 13 percent and EPS of $2.55 to $2.65. Analysts expect Starbucks to earn $2.64 per share in fiscal 2014.

Posted-In: Howard SchultzEarnings News Guidance Management After-Hours Center Movers Best of Benzinga

 

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