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Starbucks (SBUX) Slips on Weak Q3 Revenues, Sluggish Guidance

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Starbucks (SBUX - Free Report) just released its third-quarter earnings results, posting earnings of $0.49 per share and revenue of $5.24 billion.

Currently, SBUX has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.

Starbucks:

1. Matched earnings estimates. The company posted earnings of 49 cents per share (excluding 2 cents from non-recurring items), which was in line with our Zacks Consensus Estimate of $0.49.

2. Missed revenue estimates. The company saw revenue figures of $5.24 billion, missing our estimate of $5.35 billion.  

3. Comparable store sales growth was 7% in China, 4% in the U.S., and 4% globally.

4. While Starbucks adjusted its guidance for net new store openings up to 1,900 from 1,800, its other guidance wasn’t so impressive. Full year revenue growth is now expected to be 10% (down from 10%+), comps growth is now expected be in the mid-single digits (down from somewhat above mid-single digits), and fourth-quarter earnings are expected to fall between 54 cents and 55 cents per share (Zacks Consensus Estimate is currently $0.55).

5. SBUX was down $2.00, or 3.47%, to $55.60 as of 4:28 p.m. EST in after-hours trading shortly after its earnings report was released.

Here’s a graph that looks at Starbuck’s latest earnings performance:

STARBUCKS CORP Price, Consensus and EPS Surprise

STARBUCKS CORP Price, Consensus and EPS Surprise | STARBUCKS CORP Quote

Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipment primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets.

Make sure to check back here for our full coverage on Starbucks’ third-quarter earnings!

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