Starbucks’ Shares Fall After Solid Results (SBUX)
Coffee merchant Starbucks Corp. (NASDAQ: SBUX) must be wondering today what it needs to do to impress investors. For its second fiscal quarter, the company reported revenues of $3.2 billion and EPS of $0.40, both above consensus estimates. The troubles…
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The troubles are coming from Europe, where same-store sales fell -1%. The company is sending in two top US executives to turn around the European business, but currently has no timetable for improvement.
The company also raised its full-year EPS guidance to $1.81-$1.84. But the rise was below the previous consensus estimate of $1.86, adding to the woes that analysts saw in Europe.
Shares are down -5.4% at $57.37 in a 52-week range of $33.72-$62.00. Starbucks’ shares were up about 64% for the past 12 months before today’s decline.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
