Starbucks Corp. (NASDAQ:SBUX) just released its fourth quarter fiscal 2016 financial results, posting earnings of 56 cents per share and revenues of $5.7 billion. SBUX is a #3 (Hold), and is up 3.36% to $53.51 per share in after-hours trading after its earnings report was released.
Beat earnings estimates. The company reported non-GAAP earnings of 56 cents per share, beating the Zacks Consensus Estimate of 55 cents per share. Investors should note this number included 6 cents related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of 50 cents per share grew 16% over the year-ago period.
Beat revenue estimates. The company saw revenue figures of $5.7 billion, just edging past the Zacks estimates of $5.682 billion and growing 16% year-over-year.
Starbucks reported that comparable store sales were up 5% in the Americas, 4% in the U.S., 6% in China, and 4% Globally. The company notes that the average ticket grew 4% and traffic grew 4% in the U.S. after adjusting for any estimated impact of order consolidation related to its new Starbucks Rewards loyalty program.
Mobile Order and Pay represented 6% of U.S. transactions in the quarter, up from 5% in the prior quarter.
Looking ahead, Starbucks expects to open roughly 2,100 net new stores globally in fiscal 2017, and forecasts mid-single digit comparable store sales growth and consolidated revenue growth in the double digits. GAAP EPS is expected to fall in the range of $2.09 to $2.11 per share and non-GAAP EPS in the range of $2.12 to $2.14 per share.
Here’s a graph that looks at Starbucks’ price, consensus, and EPS surprise:
STARBUCKS CORP Price, Consensus and EPS Surprise
STARBUCKS CORP Price, Consensus and EPS Surprise | STARBUCKS CORP Quote
Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipment primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>
STARBUCKS CORP (SBUX): Free Stock Analysis Report
Original post
Zacks Investment Research