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Starbucks Drops 1% After Earnings Beat

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Starbucks Drops 1% After Earnings Beat

Starbucks (NASDAQ: SBUX) is down more than one percent in after hours trading after releasing positive fourth-quarter results.

The company came out on top, posting a Q4 EPS of $0.63 versus the Street estimate of $0.60. This is a 37 percent increase from where the company's EPS was during the year-ago period. It also set a new record for Starbucks.

Revenue came in at $3.8 billion versus the Street estimate of $3.81 billion. Sales were up 13 percent year-over-year.

Starbucks expects to report a first-quarter EPS between $0.67 and $0.69 versus the Street estimate of $0.57.

"The fourth quarter of fiscal 2013 capped off by far the best year in Starbucks 42-year-history," Howard Schultz, Chairman, President and CEO of Starbucks, said in a company release. "Our results were driven by disciplined, ongoing efforts to elevate the value and relevance of the Starbucks brand, continued innovation and the success of our efforts to deepen our connection to customers and communities around the world."

"Today Starbucks announced incredible fourth quarter results in what has been a truly outstanding year," added Troy Alstead, CFO of Starbucks, who was also quoted in a company release. "Outstanding global sales growth combined with record earnings and operating margin demonstrate the fundamental health of our business model and our continued ability to successfully execute on new initiatives while maintaining financial discipline. The strong momentum of the fourth quarter gives us further confidence in our robust outlook for fiscal 2014."

Starbucks has performed very well this year, rising more than 44 percent. The company has been working hard to reach new customers by selling a number of new products, including the coffee shop's first line of sodas. Those drinks have yet to receive a full nationwide rollout, but they could pop up in more locations next year.

Starbucks is also experimenting with its new tea bar concept.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

 

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Posted-In: Howard Schultz Starbucks Troy AlsteadEarnings News