Starbucks Shares Rise After Q2 Results

Shares of

jumped over 4 percent in after-hours trading after the company reported results for the second quarter. The Seattle, Washington-based company reported a quarterly profit of $494.9 million, or $0.33 per share, versus a year-ago profit of $427 million, or $0.28 per share. Its revenue climbed 18 percent to $4.56 billion. However, analysts were expecting earnings of $0.33 per share on revenue of $4.52 billion. World-wide comparable sales climbed 7 percent, while traffic gained 3 percent. U.S. comparable sales increased 7 percent in the quarter, while traffic rose 2 percent. Net revenue for the Channel Development segment climbed 16 percent to $428.0 million. Starbucks added 1.3 million new My Starbucks Rewards members during the quarter. Consolidated operating income climbed 21 percent year-over-year to $777.5 million, while operating margin rose 40 basis points to 17.0 percent. During the quarter, the company opened 210 net new stores. Starbucks announced its plans to open 1,650 stores this year. The average estimate among 77 Estimize users was for earnings of $0.34 per share and revenue of $4.51 billion for the second quarter. For the third quarter, the company expects earnings of $0.40 to $0.41 per share, versus analysts' estimates of $0.40 per share. Starbucks shares climbed 4.90 percent to $51.85 in the after-hours trading session.