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Thursday, November 05, 2009

Starbucks Shares Rise on 4Q Results, 2010 View

By Kathryn Glass

FOXBusiness

National coffee chain Starbucks (SBUX) reported adjusted earnings that beat expectations and issued guidance ahead of the Street’s view.

The company expects fiscal year 2010 revenue to grow in the low-to-mid single digits, and boosted its 2010 non-GAAP earnings per share to grow at a rate of 15% to 20%, up from a previous forecast of 13% to 18% growth.

In the fourth quarter, the company saw earnings of 20 cents per share, compared to earnings of a penny in the fourth quarter of 2008. Non-GAAP earnings per share rose 140% to 24 cents, compared to earnings of 10 cents per share in the year ago period.

Seattle-based Starbucks saw sales fall 4% to $2.42 billion, down from revenue of $2.52 billion a year ago.

Analysts were expecting the company to report earnings of 21 cents per share on revenue of $2.4 billion.

In a conference call following the release of the company’s results, Chief Executive Howard Schultz touted the success of the company’s new instant coffee, Via and said sales of food contributed to growth in the quarter.

Shares of Starbucks rose 84 cents or 4.26% in after-hours trading on Thursday, after gaining 49 cents in the session to close at $19.70 per share.

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