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.
JON C. OGG
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.