Are Starbucks Earnings Enough For Investors?
After markets closed Tuesday, Starbucks reported $0.32 in earnings per share (EPS) and $6.0 billion in revenue for its second fiscal quarter. Consensus estimates called for $0.34 in EPS and $5.89 billion in revenue.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Starbucks Corp. (NASDAQ: SBUX | SBUX Price Prediction) reported fiscal second-quarter results after markets closed Tuesday. For the quarter, the coffee giant said that it had $0.32 in earnings per share (EPS) and $6.0 billion in revenue, versus consensus estimates that called for $0.34 in EPS and $5.89 billion in revenue. The same period from last year had $0.60 in EPS and $6.31 billion in revenue.
Consolidated net revenues declined 5% from the prior year due to lost sales related to the COVID-19 outbreak. These lost sales include the effects of temporary store closures, modified operations, reduced hours and reduced customer traffic.
During the quarter, global comparable store sales decline 10%, driven by a 13% in comparable transactions, partially offset by a 4% increase in average ticket. This consisted of Americas and U.S. comparable store sales decreasing 3% and international comparable store sales decreasing 31%.
The company opened 255 net new stores in the second quarter, yielding 32,050 stores at the end of the quarter. Note that stores in the U.S. and China comprised 61% of the company’s global portfolio at the end of Q2, with 15,257 and 4,351 stores, respectively.
[nativounit]
CEO and President Kevin Johnson commented:
People around the world are united around a common cause as we navigate the COVID-19 situation globally. We are very grateful for the heroic efforts of medical personnel, first responders, government officials and volunteers who are working tirelessly in the service of others. I am exceptionally proud of the thousands of Starbucks partners around the world who are safely serving customers and playing a positive role in every community we serve.
Shares of Starbucks closed Tuesday at $78.69, with a 52-week range of $50.02 to $99.72. The consensus analyst price target is $77.50. Following the announcement, the stock was initially down 2% at $77.31 in the after-hours session.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
