ETFs In Focus As Starbucks Dishes Out Lukewarm Results
Zacks Investment Research | Jul 24, 2016 11:01PM ET
Starbucks Corporation (NASDAQ:SBUX) , a leading coffee chain, reported weak sales growth during the non-holiday season. But, the company’s mixed fiscal third-quarter results and weak outlook disheartened investors, leading to a decline in its shares.
Starbucks’ share price fell 3% during after-hours market trading. The company has already lost 4% so far this year.
Earnings in Focus
Starbucks’ adjusted earnings of 49 cents per share were in line with the Zacks Consensus Estimate. Earnings increased 17% year over year following strong growth in revenues. Fiscal third-quarter sales jumped 7% year over year to $5.24 billion on the back of robust global comparable store sales (comps) and a healthy increase in the opening of net new stores.
However, revenues came in lower than the Zacks Consensus Estimate of $5.35 billion. The company blamed the political and social turmoil globally for disappointing sales in Europe and the U.S., which led to a revenue miss for the quarter (read: Zacks Investment Research
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