Starbucks Earnings Mixed, Raises 2014 Guidance
STARBUCKS CORP (SBUX): Free Stock Analysis
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) reported Q2 2014 earnings after the bell today, posting an EPS
of $0.56, and Revenues of $3.87 billion. The EPS number was
in-line with the Zacks Consensus Estimate, but the Revenues
lagged the Zacks Consensus Revenue Estimate of $3.97 billion.
The major concern on the street was two-fold today; first, the
bottom line, and the second being Same Store Sales. The
inline earnings numbers were a positive, because the street was
concerned that the terrible weather, and commodity costs might
have negatively impacted the bottom line. Same Store Sales
also came in line with 6% growth, matching Zack's expectations.
There was plenty of positive news to come out of the earnings
announcement. First, was that there was margin expansion
across all segments for Q2 2014. Second, the company saw an
18% increase in operating income. And finally, but most
importantly, management adjusted their guidance numbers for the
fourth quarter, and fiscal year 2014. There was a narrow
rise in Fiscal Year 2014 EPS, it now stands between $2.62 and
$2.68 (from $2.59 to $2.67). The company kept their
guidance for Q3 at $0.64 to $0.66, but they did raise Q4 to $0.71
to $0.75, from $0.70 to $0.75. This only highlights the
fact that Starbucks is looking towards the second half of the
year for growth.
There was no mention of Starbuck's potential 10% equity stake in
SodaStream, but management is expected to cover the topic during
their conference call later tonight.
In afterhours trading, SBUX is up just under 1% on mild
volume. Tomorrow, Zacks will post a fully detailed earnings
report coving items in the conference call.