Shares of Starbucks Corporation (SBUX – Analyst Report), a leading coffee chain, reported strong sales growth during the holiday season. However, the company’s mixed fiscal first quarter results and weak outlook had a negative impact on investor sentiment, which led to a decline in the company’s shares following the earnings release late last Thursday.
Earnings in Focus
Starbucks’ adjusted earnings of 46 cents per share beat the Zacks Consensus Estimate by a cent. Earnings also increased 15% year over year following strong growth in revenues. Fiscal first quarter sales jumped 12% year over year to $5.373 billion on the back of robust global comparable store sales (comps) and a healthy increase in the opening of net new stores. However, revenues came in lower than the Zacks Consensus Estimate of $5.378 billion.
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