Categories Consumer, Earnings

Q2 Earnings: Starbucks delivers another satisfying quarter

Starbucks (NASDAQ: SBUX) reported a 13% increase in second-quarter adjusted earnings to 60 cents per share, which exceeded analysts’ expectation of 56 cents per share. The announcement sent the shares up 1.5% during after-market trading on Thursday.

SBUX shares have gained 18.7% this year, outperforming the S&P 500 index, which has increased 16.8% during the same period.

Starbucks Q2 2019 earnings infographic

On a GAAP basis, net income rose 12.8% to 53 cents per share, helped by a 5% growth in net sales to $6.31 billion. The top line came in line with the street expectation.

Global comparable sales rose 3%, in line with the street projection, driven by a 3% increase in average ticket.

READ: THE CANNABIS-BEVERAGE INDUSTRY IS SOMETHING YOU DON’T WANT TO MISS THIS YEAR

The second-quarter earnings come at a time when the coffee company is facing tight competition in its second-largest market – China. We had earlier reported how Chinese coffee joint Luckin Coffee is offering stiff resistance to Starbucks’ growth, by offering affordable coffee on the go.

Earlier this week, Luckin filed for a US IPO, to reportedly raise up to $800 million. All this has contributed to a recent spike in short interest in SBUX stock.

Outlook

Looking ahead into fiscal 2019, the company expects global comparable store sales growth between 3% and 4%. It is also aiming to open approximately 2,100 net new stores around the globe before the end of this year.

Starbucks raised its guidance for FY2019 Non-GAAP EPS in the range of $2.75 to $2.79. Previously it was projected to be in the range of $2.68 to $2.73.

Outlook for FY2019 GAAP EPS was raised to $2.40 to $2.44 from the prior range of $2.32 to $2.37.

Price target hike

Last week, Andrew Charles of Cowen raised the price target on the coffee chain from $63 to $69. However, the new price is still at a 9% discount from the current trading price.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top