Starbucks Corp. (NASDAQ: SBUX) has announced its third quarter earnings its fiscal 2014. Howard Schultz and friends reported that adjusted earnings were $0.67 per share and revenue grew %11 to $4.2 billion. Thomson Reuters had estimates of $0.66 EPS and $4.14 billion in revenue.
Source: courtesy of Starbucks Corp.
There were additional items which stood out with earnings. Starbucks had strong comparable store sales gains of 6% globally and 7% in the United States. Channel development revenues also increased by 13%, and the consolidated operating margin expanded to 18.5%.
As for guidance, Starbucks now sees future results having operating margin improvement now targeted at 200 basis points over its fiscal year 2013. For 2014, Starbucks sees earnings of $2.70 to $2.72 per share or $2.65 to $2.67 per share if you exclude a benefit. Thomson Reuters was calling for earnings to be $2.67 per share.
Starbucks went out on a limb for investors today with the initiation of its fiscal 2015 guidance. The company offered up the following guidance metrics:
- Revenue growth of 10% or greater (in line with Thomson Reuters’ 10.7%)
- EPS growth of 15% to 20% over Fiscal 2014 based on Non-GAAP earnings (targeted at 18% by Thomson Reuters)
- Global comparable store sales growth in the mid single-digits
- To open an additional 1,600 net new stores globally
ALSO READ: Can Starbucks Market Tea as a Life-Saving Product?
Starbucks closed up 1.6% at $80.45 in regular trading on Thursday, versus a 52-week range of $66.30 to $82.50. The consensus analyst price target was $88.63 prior to earnings. After-hours trading indications initially had shares down 0.85 around $79.85 or so, but we will wait for the dust to settle and to see where the analysts give their rankings on Friday morning.
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
