Starbucks Q4 Results Top Wall Street View; Shares Up 8%

(RTTNews) - Starbucks Corp. (SBUX), the world's largest specialty coffee retailer, Thursday reported a profit and revenues for the fourth quarter that trumped Wall Street estimates, driven largely by growth in China and Americas. Shares of the company jumped 8 percent in the extended trading session.

Seattle, Washington-based Starbucks' fourth-quarter profit dropped to $755.8 million or $0.56 per share from $788.5 million or $0.54 per share last year.

Adjusted earnings for the quarter were $0.62 per share, up from $0.55 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter grew 10.6 percent to $6.30 billion from $5.70 billion last year. Analysts had a consensus revenue estimate of $6.27 billion for the quarter.

Global comparable store sales increased 3 percent, including a 4 percent increase in the Americas and US and a 1 percent increase in the China and Central Asia Pacific. Starbucks, which has been expanding its menu offerings, said it opened 604 net new stores globally, bringing total stores to 29,324 worldwide.

"In Q4, Starbucks delivered improved sequential results in both our Americas and China/Asia Pacific segments. We also further set the stage for increased benefits from our ongoing efforts to streamline the company," said CFO Scott Maw. "Each of these factors contributed to the record Q4 results we reported today and position us well for fiscal 2019 and beyond."

For the full-year 2019, Starbucks now expects adjusted earnings of $2.61 to $2.66 per share and revenue growth of 5 to 7%. Analysts currently estimate earnings of $2.64 per share and revenue growth of 6%.

Starbucks also expects to add about 2,100 new stores globally and global comparable store sales growth near the lower end of current 3% to 5% range for 2019.

SBUX closed Thursday's trading at $60.55, down $0.28 or 0.46%, on the Nasdaq. The stock further dropped $1.55 or 2.56% in the after-hours trade.