ETFs To Gain From Starbucks' Solid Q3 Earnings Report
Zacks Investment Research | Jul 27, 2019 02:17AM ET
Starbucks Corporation (NASDAQ:SBUX) released third-quarter fiscal 2019 results after market close on Jul 25, with earnings and revenues surpassing estimates. Following the earnings release, Starbucks gained 6.6% in after-hour trading.
Earnings in Focus
Starbucks reported adjusted earnings of 78 cents per share, beating the Zacks Consensus Estimate by 8.3% and improving 25.8% from the year-ago quarter. Revenues grew nearly 8.1% year over year to $6.82 billion, beating the Zacks Consensus Estimate by 2.1%.
Strength in the Americas and China-Asia-Pacific segments and store openings drove the company’s performance in the reported quarter. The company’s efforts to deliver enhanced customer experience, launch beverages and broaden digital customer relationships have been driving results.
Starbucks has updated its guidance for fiscal 2019 earnings. Non-GAAP EPS is expected in the range of $2.80 to $2.82 against the previous guidance of $2.75 to $2.79.
Business Update
Starbucks opened 442 net stores worldwide, taking the total tally to 30,626. Global store growth was 7% on a year-over-year basis. The company stated that around one-third of the net new store opening was in China while 48% was in other global markets.
Moreover, global comparable store sales increased 6% driven by comp growth in the United States, China and Asia Pacific. Global comps were driven by a 3% rise in average ticket.
The company’s Active Starbucks StarbucksRewards loyalty program expanded to 17.2 million active members in the United States, up 14% on a year-over-year basis.
ETFs in Focus
Investors might want to take a look at some consumer discretionary ETFs which have notable exposure to Starbucks and can cash in on the coffee giant’s stellar earnings results (see: Zacks Investment Research
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