Starbucks Corp SBUX shares have been trending lower since the start of the year, but the stock is catching some bids Wednesday after the company reported strong earnings results.
What Happened: Starbucks said fiscal second-quarter revenue increased 15% year-over-year to $7.64 billion, which beat the $7.6 billion estimate, according to data from Benzinga Pro. The company reported quarterly adjusted earnings of 59 cents per share, which was in line with analyst estimates.
Comparable store sales were up 7% globally and up 12% in the U.S.
Why It Matters: Hightower Advisors' Stephanie Link decided to buy Starbucks shares following the company's report.
"The stock is down 35% from July '21 highs, and I thought the quarter was actually really pretty good," Link said Wednesday on CNBC's "Fast Money Halftime Report."
The comparable sales in the U.S. really stood out, Link said: "And that just speaks to the demand." China numbers were down, which weighed on global comparable store sales, but Covid cases in China will eventually slow and Starbucks will benefit from the reopening, she added.
Starbucks also eliminated the $20 billion buyback that was in place, which Link views as a positive as she sees the company using the cash to invest in its products, people and stores.
She also wanted to initiate a position ahead of Starbucks' analyst day in September, which Link expects will be a catalyst for the stock.
"Howard Schultz will do a very good job in talking about how there's a lot of upside and opportunity for the company," she said.
"So I started with a small position, and I'm just going to continue to add because I do believe in their brand power and I believe in Howard Schultz."
SBUX Price Action: Starbucks has traded between $73.38 and $126.32 over a 52-week period.
The stock was up 7.89% at $80.20 at press time.
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