How much surprise in Starbucks' surprise warning today?Aaron Pressman
Starbucks (Symbol: SBUX) came out with its fiscal second quarter results a bit earlier than expected today and it wasn’t because folks were flocking to the six Clover s1 locations. Nope, instead plummetting consumer traffic, particularly in Florida and California, hit the company’s bottom line. Analysts were expecting 21 cents a share of net income for the three months ended March 30 but SBUX CEO Howard Schultz says it was more like 15 cents. Revenue climbed 12% versus the 17% analysts predicted. Starbucks was scheduled to release its results a week from today.
But, as noted previously a few times, this is one beat up stock, which, though currently suffering, still produces a lot of cash and has decent growth prospects overseas. In after-hours trading Starbucks shares fell only about $2 or so to $16.
Meanwhile, it’s looking like a disappointing afternoon across the market. Apple (AAPL) and Amazon.com (AMZN) reported excellent past quarter results but offered weaker than expected guidance about upcoming quarters. Both are trading down modestly in after hours dealing.