Thursday October 29, 2015
By: Lisa Baertlein
Starbucks estimated earnings in the fiscal first quarter, its biggest for revenue, of 44 cents to 45 cents, excluding items, saying the strong dollar would reduce its revenue. Analysts on average had a target 47 cents, according to Thomson Reuters I/B/E/S.
Its full-year forecast on Thursday also offered little upside for investors, who worry that shares of the world's biggest coffee chain are too hot after rallying more than 60 percent over the past year.
The company said global sales at cafes open at least 13 months rose 8 percent in the fiscal fourth quarter ended Sept. 27, beating than the 6.9 percent rise expected by analysts polled by research firm Consensus Metrix. Those sales grew 7 percent in the third quarter.
Starbucks' U.S.-dominated Americas unit contributes the majority of Starbucks' revenue. It also includes Canada and Latin America.
The Seattle-based company's third-quarter net income jumped 11 percent to $652.5 million, or 43 cents per share, matching analysts' average target according to Thomson Reuters I/B/E/S.
Starbucks also forecast fiscal 2016 earnings, excluding items, of $1.87 to $1.89 per share, in line with analysts' average call for $1.88 per share.
Starbucks shares fell 1.5 percent in extended trading, after closing at $62.50 on NASDAQ.