Starbucks Corp. (NASDAQ: SBUX)
Starbucks Corp. Earnings & Technicals
After the market closed on Thursday, Starbucks Corp. (SBUX) announced second quarter earnings that missed on expectations and sent shares tumbling in the post market session. The company announced 39 cents per share on $4.99 billion in revenues while analysts were looking for 39 cents per share on $5.03 billion in revenues. This is also compared to 33 cents per share on $4.56 billion in revenues for the same period last year. Currently analysts have an average price target of $67.84.
Looking at the chart you will see that shares have been crushed in the post market session after closing the day at $60.64 with post market lows hitting $57.12, a 5.8% drop in price. In the long run shares have provided great value for investors but have began to slow down after topping out in October 2015 at $64.00. Shares have since come back in and tapped the 200-day moving average that is currently sitting at $58.64. Look for support to come in at $58 and $58.64 while resistance will be met at $60 and $60.48. If shares can hold the 200-day moving average I like this for a bounce but we’ll have to see how price action behaves around this important level.
“Starbucks record Q2 financial and operating performance – including a stunning 18% increase in revenues and a 5% increase in transactions in China – underscores the strength of the Starbucks brand and the resiliency of our global retail and CPG businesses,” said Howard Schultz, chairman and CEO. “Loyalty, technology and innovation are continuing to fuel our digital flywheel and propel our business forward all around the world.” (SBUX)
“Starbucks Q2 represented another quarter of solid growth, with the highest revenues of any non-holiday quarter in our history and excellent financial, operating and profit performance,” said Scott Maw, CFO. “The record-setting performance we delivered in the first half of fiscal 2016 ideally positions us to benefit from the investments we are making in our partners, in our stores and in groundbreaking innovation, and to continue delivering world class returns to our shareholders into the future.” (SBUX)
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The Company purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts. It operates through four segment: Americas, which includes the United States, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP), and Channel Development. In addition to its Starbucks Coffee brand, it also sells goods and services under the brands, including Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos. Its Americas, EMEA, and CAP segments include both Company-operated and licensed stores. The Americas and EMEA segments include certain foodservice accounts, primarily in Canada and the United Kingdom. (GoogleFinance)