Starbucks shares fall after company narrowly misses sales expectations

Shares of Starbucks Corp. fell more than 3% late Thursday after the company reported same-store sales below expectations and narrowly missed sales forecasts. Starbucks said it earned $2.25 billion, or $1.57 a share, in the quarter, compared with $752 million, or 51 cents a share, in the year-ago period. Adjusted for one-time items, Starbucks earned 65 cents a share, including a 7-cent benefit from the U.S. tax overhaul. Sales rose to $6.1 billion, from $5.7 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of 57 cents a share on sales of $6.2 billion. Starbucks’ same-store sales rose 2% globally. The analysts surveyed by FactSet had expected a 3% rise. The company said it expects GAAP per-share earnings in the range of $3.32 to $3.36 for fiscal 2018, and adjusted EPS in the range of $2.48 to $2.53 for the year. The new guidance is “consistent” with prior guidance but it was updated to include impact of the new tax rate and related reinvestments, the company said. Shares ended the regular session down 0.5%.

Via (Market Watch)

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