Starbucks Q3 Profit Misses Estimates (SBUX)

PUBLISHED: Jul 27 2012 @ 15:09 | Comments (0) | More info about Ed Liston

Starbucks Corporation (NASDAQ:SBUX) today reported weaker-than-expected third-quarter earnings. SBUX also lowered its outlook, sending the stock down sharply.

Starbucks, which is the world’s largest coffee chain, said that store traffic has been noticeably down in many areas across the U.S. and the trend has continued in July.

For the third quarter, Starbucks reported net income of $333.1 million, or $0.43 per share, compared to $279.1 million, or $0.36 per share reported for the same period last year. SBUX’s earnings missed the consensus forecast of $0.45 per share.

SBUX’s global same-store sales climbed 6% in the third quarter, below the consensus forecast of growth of 6.1%. The company’s same-store sales in Americas rose 7%. Same-store sales in China and Asia-Pacific rose 12%.

Revenue for the quarter rose 13% to $3.3 billion, missing consensus forecast of $3.3 billion

Looking ahead, Starbucks expects fiscal 2013 profit to come in at $2.14 per share, which is well below the consensus forecast of $2.28 per share.

SBUX stock fell to an intra-day low of $46.12 in trading today before paring some of the losses. At last check, the stock was down 8.84% to $47.77on above average volume of 21.66 million.

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