Starbucks Profit Rises, But Revenue Misses View - Update

(RTTNews) - Starbucks Corp. (SBUX), the world's largest specialty coffee retailer, Thursday reported an increase in profit for the third quarter, driven largely by growth in China and Americas. However, the company's shares slipped 3 percent in extended hours after its revenues for the quarter missed estimates.

Seattle, Washington-based Starbucks' third-quarter profit rose to $754.1 million or $0.51 per share from $626.7 million or $0.41 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter.

Net revenues for the quarter grew 7.8 percent to $5.24 billion from $4.88 billion last year. Analysts had a consensus revenue estimate of $5.33 billion for the quarter.

Global comparable store sales increased 4 percent, including a 4 percent increase in the Americas, a 3 percent increase in the China/Asia Pacific and a 1 percent decline in the EMEA. Starbucks, which has been expanding its menu offerings, said it opened 474 new stores globally, bringing total stores to 24,395 worldwide.

"Starbucks record Q3 performance, highlighted by strong 7% comp growth and record revenues and profits in China and 18% year-over-year growth in our Starbucks Rewards loyalty program, demonstrates the strength and resilience of the Starbucks brand and business around the world," said CEO Howard Schultz.

For the full-year 2016, Starbucks continues to expect earnings of $1.88 to $1.89per share. For the fourth quarter, the company expects earnings of $0.54 to $0.55 per share.

SBUX closed Thursday's trading at $57.59, up $0.06 or 0.09%, on the Nasdaq. The stock, however, dropped $2.16 or 3.75% in the after-hours trade.