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Starbucks Shares Rise Sharply after Record Q1 Results (SBUX)

Shares of Starbucks Corporation (NASDAQ: SBUX) have risen sharply in early trading today after the company posted record first-quarter financial results, driven by strong same-store sales. The company’s earnings for the quarter came in-line with Street estimates.

For the first quarter ended December 30, 2012, the Seattle-based company reported total net revenue of $3.8 billion, a record and up 11% over the same period in the previous year. The company’s global comparable sales for the quarter rose 6%, driven by a 4% increase in traffic and a 2% increase in average ticket. Comparable stores in the Americas rose 7%, while in China/Asia Pacific, the company saw an 11% increase in comparable store sales.

Starbucks reported earnings of $432.2 million, or $0.57 per share for the quarter, compared to $382.1 million, or $0.50 per share reported for the same period in the previous year.

Analysts were expecting SBUX to report earnings of $0.57 per share and revenue of $3.85 billion.

Commenting on the first-quarter results, Howard Schultz, Chairman, President and CEO of Starbucks, said that the company’s strong performance in the first quarter demonstrates the strength and unique resilience of its increasingly global business, and the power and growing relevance of the Starbucks brand to consumers and communities around the world. Schultz noted that solid growth in the company’s U.S. retail business, further expansion of its Channel Development initiatives and continued successful execution against its expansion plans throughout China and Asia Pacific all contributed to record results in the first quarter.

For fiscal 2013, Starbucks expects revenue growth of approximately 10% to 13%. The company expects mid-single digit comparable store sales growth. Full year consolidated operating margin is expected to improve 100 basis points over fiscal 2012.

Starbucks shares rose to an intra-day high of $57.27 in early trading today. At last check, the stock was trading 4.29% higher at $56.29 on volume of 2.19 million.


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