Photo: By Pierre Mallien on Flickr
Starbucks announced first quarter earnings of $0.50 a share after the closing bell, topping expectations by a penny, while saying full year earnings would come in at the high-end of previous guidance.Revenues surged 16% to $3.44 billion at the Seattle, Washington, based coffee chain.
Analysts polled by Bloomberg were looking for first quarter earnings of $0.49, on top line results of $3.3 billion.
“Our first quarter results demonstrate the fundamental strength of the Starbucks business and the powerful momentum we carried into fiscal 2012,” Starbucks CFO Troy Alstead said. “A very successful holiday season drove strong global same store sales, which, combined with continued operational efficiencies, delivered record results despite continued commodity cost pressures. We are well positioned to continue to drive strong revenue and profit growth throughout this year, and in years to come.”
Comparable store sales were up across all regions, including Europe. However, the company saw the greatest lift in China and the Asia Pacific, where sales at stores open at least 13 months jumped 20%.
The first results of Starbucks deal with Green Mountain Coffee Roasters was also made in today’s announcement, when Starbucks said it shipped more than 100 million branded K-Cup packs during the period.
Sales in the segment representing K-Cups increased 72% year-on-year, hitting $335 million and making it the second largest revenue producer for the company, ahead of store sales in either Europe, the Middle East and Africa, or Asia.
However, margins in the unit declined 1,270 basis points, as increased coffee prices hurt net income. Overall, the company saw operating margins fall 80 basis points, to 16.2%.
Wall Street currently predicts second quarter earnings per share of $0.38 on revenue of $3.1 billion, and full year earnings of $1.82.
In its announcement today, Starbucks said earnings per share would fall between $1.78 and $1.82 for 2012.