REUTERS/Andrew Kelly
- Starbucks shares rose in late trading on Thursday after the company reported second-quarter results.
- While the company’s global comparable sales fell just short of expectations, its profits beat.
- Watch Starbucks trade live.
Starbucks shares jumped as much as 2% in after-hours trading on Thursday, hitting a record high, after the coffee giant reported better-than-expected earnings and raised its fiscal 2019 guidance.
Here’s what Starbucks reported, compared with what analysts polled by Bloomberg were expecting:
- Adjusted earnings per share: $0.60 versus $0.56 expected.
- Revenue: $6.30 versus $6.32 billion expected.
- Comparable store sales: +3% versus +3.1% expected.
- Comparable store sales in the Americas: +4% versus +3.7% expected.
The company highlighted particularly strong sales in the US and China.
Starbucks saw a 4% jump in the average ticket price for the Americas and US, and a 2% increase in China/Asia Pacific. Weakness was found in China’s comparable transactions, however, which declined 1%.
"We are especially pleased with our comparable store sales growth in our two lead markets, the U.S. and China, where we are also continuing to drive strong new store development with industry-leading returns," Kevin Johnson, president and CEO, said in a statement.
The company ended the quarter with 30,184 stores globally — an increase of 7% from the same time last year. A whopping 94% of net new store openings were outside the US.
Starbucks raised its adjusted earnings-per-share outlook to a range between $2.75 to $2.79 a share, up from $2.68 to $2.73.
The company bought back 37.4 million shares during its second fiscal quarter.
Wall Street is generally neutral on Starbucks. Of the analysts surveyed by Bloomberg, 15 recommend "buy," 16 suggest "hold," and one says "sell."
This story is developing. Please check back for updates.
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Source: Business Insider – rungarino@businessinsider.com (Rebecca Ungarino)