Starbucks Shares Perk Up After Q1 Earnings Beat

Starbucks Corporation SBUX reported an earnings and sales beat for the first quarter.

Starbucks reported first-quarter adjusted earnings of 75 cents per share, beating Street estimates by 10 cents. Sales came in at a record $6.6 billion, beating estimates of $6.49 billion.

Starbucks also issued strong FY2019 earnings guidance of $2.68 to $2.73 per share.

CEO Kevin Johnson said strong boosts in U.S. sales were helping drive the company’s success.

"We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience,” Johnson said in a statement. “With this solid start to the fiscal year, we are on track to deliver on our full-year commitments."

Q1 Highlights

• Consolidated net revenues up 9 percent to record $6.6 Billion
• Comparable store sales up 4 percent worldwide paced by 4 percent U.S. growth.
• China comparable store sales up 1 percent, total China stores up 18 percent vs. prior year.

Starbucks shares have trailed the S&P 500 in 2019 and are down from November highs, but higher than lows posted last summer.

The stock was up 2.1 percent after Thursday's close to $66.10 after falling by about 2.5 percent during the regular trading session.

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