Starbucks Corp. (NASDAQ: SBUX) has just reported earnings of $0.33 non-GAAP EPS and $2.72 billion in revenues vs. $0.28 and $2.60 billion in revenue estimates from Thomson Reuters. The biggest figure here is that the same store sales were up about 4%, which we were looking for a 1% gain or slightly more. The company is offering higher guidance for 2010 revenue growth of mid-single digits and $1.05 to $1.08 EPS versus Thomson Reuters estimates of $1.02 EPS.
The company is targeting for 2010: modestly positive growth in same store sales for 2010, US margin growth of 400 basis points cash flow from operation of $1.5 billion and free cash flow of $1 billion.
As far as new US stores, that is being put at only about 100 stores. It sees 200 stores internationally being added in 2010.
After shares have more than doubled, we knew that Starbucks would have to beat and raise guidance to run further. The investing community feels it has done that and then some as shares closed down 1.2% at $23.29 but are trading right above $24.00 in the after-hours session. The 52-week high is $24.00.
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