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Starbucks (SBUX) Gains on Q4 Earnings Beat, Global Comps Up 4%

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Starbucks Corp. (SBUX - Free Report) just released its fourth quarter fiscal 2016 financial results, posting earnings of 56 cents per share and revenues of $5.7 billion. SBUX is a #3 (Hold), and is up 3.36% to $53.51 per share in after-hours trading after its earnings report was released.

Beat earnings estimates. The company reported non-GAAP earnings of 56 cents per share, beating the Zacks Consensus Estimate of 55 cents per share. Investors should note this number included 6 cents related to the extra week in Q4 FY16. Excluding the extra week, non-GAAP EPS of 50 cents per share grew 16% over the year-ago period.

Beat revenue estimates. The company saw revenue figures of $5.7 billion, just edging past the Zacks estimates of $5.682 billion and growing 16% year-over-year.

Starbucks reported that comparable store sales were up 5% in the Americas, 4% in the U.S., 6% in China, and 4% Globally. The company notes that the average ticket grew 4% and traffic grew 4% in the U.S. after adjusting for any estimated impact of order consolidation related to its new Starbucks Rewards loyalty program.

Mobile Order and Pay represented 6% of U.S. transactions in the quarter, up from 5% in the prior quarter.

Looking ahead, Starbucks expects to open roughly 2,100 net new stores globally in fiscal 2017, and forecasts mid-single digit comparable store sales growth and consolidated revenue growth in the double digits. GAAP EPS is expected to fall in the range of $2.09 to $2.11 per share and non-GAAP EPS in the range of $2.12 to $2.14 per share.

Here’s a graph that looks at Starbucks’ price, consensus, and EPS surprise:

STARBUCKS CORP Price, Consensus and EPS Surprise

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

Starbucks 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. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.

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