Starbucks' (SBUX) Q4 Earnings Match Estimates, Stock Up
Zacks Investment Research | Oct 30, 2019 11:45PM ET
Starbucks Corporation (NASDAQ:SBUX) reported fourth-quarter fiscal 2019 results, wherein earnings met the Zacks Consensus Estimate, after outpacing the same for five straight quarters. Meanwhile, revenues surpassed the consensus mark during the reported quarter. With this, revenues topped analysts’ expectations in six of the trailing seven quarters.
Following the solid quarterly performance, shares of Starbucks gained almost 3% in after-hours trading on Oct 30.
The quarterly results benefited from robust performance of Americas and China-Asia-Pacific segments, store openings, enhanced customer experience, as well as digitalization. Furthermore, the company witnessed strong demand for new beverages in the United States and China. Meanwhile, comparable sales from China increased for the fifth straight quarter.
Discussion on Earnings, Revenues & Comps
In the quarter under review, adjusted earnings of 70 cents per share met the consensus mark but increased 12.9% on a year-over-year basis.
Total revenues came in at $6,747 million, which outpaced the consensus estimate of $6,660 million by 1.1% and increased 7% from the year-ago level. The upside was driven by robust global retail sales, comparable sales growth and streamline-driven activities.
Global comparable store sales increased 5% compared with 6% improvement in the second quarter of fiscal 2019. Global comps were driven by a 3% increase in average ticket and 2% improvement in comparable transactions.
Starbucks opened 630 net new stores worldwide in the fiscal fourth quarter, bringing the total store count to 31,256. Global store growth came in at 7%, based on a year-over-year comparison.
Starbucks Corporation Price, Consensus and EPS Surprise
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