Business News: Starbucks shares drop amid investor concerns about international growth.
Starbucks on Tuesday reported mixed quarterly results and raised its full-year forecast for earnings and revenue. While the company’s earnings topped Wall Street’s expectations, its revenue missed estimates, dragged down by some international markets’ slower recovery. Shares of the company dropped nearly 2% in extended trading.
Starbucks reported fiscal second-quarter net income of $ 659.4 million, or 56 cents per share, up from $ 328.4 million, or 28 cents per share, a year earlier. Excluding items, the coffee chain earned 62 cents per share, topping the 53 cents per share expected by analysts surveyed by Refinitiv. Net sales rose 11% to $ 6.7 billion, missing expectations of $ 6.8 billion. Global same-store sales grew by 15% as the company lapped a decline of 10% from the year-ago period.
The company opened five net new cafes during the quarter. That includes the impact of closing roughly 300 locations in the US and Canada, which it previously announced in June as part of a broader strategy to update its restaurant footprint.
For all of fiscal 2021, Starbucks now expects to earn $ 2.65 to $ 2.75 per share, up from its prior range of $ 2.42 to $ 2.62 per share. It’s expecting earnings on an adjusted basis of $ 2.90 to $ 3 per share, up from its previous outlook of $ 2.70 to $ 2.90 per share. Analysts were expecting earnings per share of $ 2.85 for the fiscal year.
The company also raised its full-year outlook for revenue to a range of $ 28.5 billion to $ 29.3 billion, up from a prior range of $ 28 billion to $ 29 billion. Wall Street was forecasting revenue of $ 28.6 billion. Fiscal 2021 includes a 53rd week, which Starbucks expects will add about $ 500 million in revenue.