Starbucks (NASDAQ:SBUX) dropped as low as 3% in after-market trading upon missing revenue estimates.
For the second fiscal quarter, which ended March 31, Starbucks seemed to do great. It beat Wall Street's earnings-per-share (EPS) estimates of $0.48 per share with $0.51 per share. However, the Street ultimately punished the stock because it missed revenue expectations. Instead of bringing in $3.59 billion, it raked in $3.56 billion.
Moving beyond those expectations, Starbucks itself was pleased with the results. It was particularly proud of its comparable-store sales, which grew 6%, the 13th consecutive quarter of global comp growth of more than 5%. Over the quarter, Starbucks added 590 new stores worldwide, including 337 Teavana stores.
Meanwhile, the company has worked to cut down on costs. Its operating margin grew 1.8 percentage points to 15.4%.
In a press release, CFO Troy Alstead said,
Record second quarter results once again illustrate the power of the Starbucks business and brand. Continued strength in our US operations, despite ongoing uncertainty in the macro environment, has fueled our performance and allows us to pursue long term strategic initiatives across our segments. Given our performance in the first half of the year and the considerable momentum in the business as we enter the second-half, we are raising our full year earnings growth target.
While Starbucks' previous full-year EPS target was $2.06-$2.15, it has now raised that to $2.12-$2.18.
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