Starbucks Results Top Estimates
Starbucks Corp., the world's largest specialty coffee retailer, said Thursday after the markets closed that its third quarter profit rose 22% from last year, as revenue surged 18%.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. At the same time, the company raised its its fiscal year 2015 adjusted earnings outlook.
"Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company," said Howard Schultz, Starbucks chairman and CEO.
Starbucks also said that its Board of Directors has authorized the repurchase of an additional 50 million shares of the company's common stock under its ongoing share repurchase program. This authorization has no expiration date and is in addition to the 11 million shares that remained available for repurchase as of June 28 under an existing authorization.
Separately, Starbucks and PepsiCo, Inc. announced that they have entered into an agreement for the marketing, sales and distribution of a locally-relevant portfolio of Starbucks ready-to-drink coffee and energy products in Latin America. Starbucks shares are currently gaining 4.40% in after hours trading after closing the day's regular trading session at $56.56, down 13 cents. The shares trade in a 52-week range of $35.39 to $57.00.
For the third quarter ended June 28, 2015, the Seattle, Washington-based company reported net income of $626.7 million or $0.41 per share, compared to $512.6 million or $0.34 per share for the year-ago quarter. Excluding Starbucks Japan acquisition-related items, adjusted earnings per share for the latest quarter were $0.42.
On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.41 per share for the third quarter. Analysts' estimates typically exclude special items.
Total net revenues for the third quarter rose 17.5% to $4.88 billion from $4.15 billion in the same quarter last year, mainly driven by incremental revenues from the acquisition of Starbucks Japan, a 7% increase in global same-store sales and the opening of 1,592 net new stores over the past 12 months. Twenty-three analysts had a consensus revenue estimate of $4.86 billion for the third quarter.
Americas revenues rose 12% to $3.4 billion in the third quarter, driven by 8% growth in same-store sales and incremental revenues from 658 net new store openings over the past 12 months. However, EMEA revenues fell 9% to $294.7 million mainly due to unfavorable foreign currency translation and the shift in the portfolio towards more licensed stores.
Net revenues for the China/Asia Pacific segment jumped 127% to $652.7 million in the third quarter, mainly driven by incremental revenues from the acquisition of Starbucks Japan as well as an 12% same-store sales growth and incremental revenues from 750 net new store openings over the past 12 months.
Looking forward to the fourth quarter, the company lowered its reported earnings forecast to a range of $0.38 to $0.39 per share from its prior forecast of $0.40 to $0.41 per share, but maintained its adjusted earnings outlook of $0.42 to $0.43 per share. Analysts currently expect the company to earn $0.43 per share for the fourth quarter.
For the fiscal year 2015, Starbucks continues to expect revenue growth of 16% to 18%. The company now forecasts full year earnings of $1.77 to $1.78 per share and adjusted earnings of $1.57 to $1.58 per share. Previously, the company forecast full year earnings of $1.77 to $1.79 per share and adjusted earnings of $1.55 to $1.57 per share.
Analysts currently expect the company to earn $1.57 per share on revenue growth of 16.50% for the fiscal year 2015. (dpa)
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