Join        Login             Stock Quote

Starbucks (SBUX) 1Q Earnings In Line With Street; Reaffirms 2013 Forecast

 January 24, 2013 04:36 PM

(By Balaseshan) Starbucks Corp. (NASDAQ: SBUX) reported a 13.1 percent increase in quarterly earnings on strong traffic growth, and continued momentum in Channel Development. Earnings came in line with consensus and the specialty coffee maker reaffirmed its fiscal 2013 forecast.

Earnings were $432.2 million or $0.57 per share for the first quarter, compared to $382.1 million or $0.50 per share last year.

Revenue grew 10.6 percent to $3.80 billion. Global comparable store sales increased 6 percent, driven by a 4 percent increase in traffic and a 2 percent rise in the average ticket.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.57 per share on revenue of $3.84 billion for the first quarter.

[Related -Chipotle Mexican Grill, Inc. (CMG): This High-Flying Stock Could Tumble 50%]

Revenue from company-operated stores increased 9.4 percent to $2.99 billion, while revenue from licensed stores grew 14.2 percent to $350.2 million. CPG, food service and other revenue jumped 15.7 percent to $459.8 million.

Revenue for the Americas segment increased 10.2 percent, while revenue for the EMEA segment rose 1 percent. Revenue for the China/Asia Pacific segment jumped 28.3 percent.

Channel development revenue grew 13.1 percent to $379.8 million, primarily driven by sales of Starbucks- and Tazo-branded K-Cup packs as well as incremental sales related to the launch of the Verismo system.

Looking ahead into the fiscal 2013, the company reaffirmed its EPS guidance of $2.06 to $2.15 and revenue growth outlook of 10 percent to 13 percent. Street analysts predict EPS of $2.16 on revenue growth of 12.70 percent.

[Related -For Maximum Total Return Go For Growth]

The company said the revenue outlook is driven by mid-single-digit comparable store sales growth, about 1,300 net new store openings, and continued strong growth in the channel development business.

"Starbucks strong Q1 performance reaffirms our confidence in the aggressive 2013 growth targets we announced in early November. The quality and diversity of growth drivers in the business, combined with our continued focus on operational excellence, gives us confidence in sustainable, strong profitable growth," said Troy Alstead, chief financial officer of Starbucks.

The board declared a cash dividend of $0.21, payable on February 22 to shareholders of record as of February 7.

SBUX closed Thursday's regular session up 0.20 percent at $54.57. The stock has been trading between $43.04 and $62.00 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.