Starbucks Q2 Profit Beats Street View, Lifts FY Outlook

(RTTNews) - Starbucks Corp. (SBUX), the world's largest specialty coffee retailer, Tuesday said its second-quarter profit surged from a year ago, driven largely by increase in same-store sales. Earnings for the quarter trumped Wall Street estimates, but revenues fell short of expectations. Moving ahead, the company lifted its full year 2021 outlook.

Seattle, Washington-based Starbucks reported second-quarter profit of $659.4 million or $0.56 per share, up from last year's profit of $328.4 million or $0.28 per share.

Adjusted earnings rose to $0.62 per share from $0.32 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter grew 11.2 percent to $6.67 billion from $6.00 billion last year. Analysts had a consensus revenue estimate of $6.82 billion for the quarter.

Revenue increase was largely driven by growth in comparable store sales as last year's results were impacted the COVID-19 pandemic.

"I am very pleased with our progress to date in fiscal 2021, as our second quarter results demonstrated impressive momentum in the business with full sales recovery in the U.S. Our strong results validate our ability to adapt to changes in our environment and the needs of our customers," said CEO Kevin Johnson.

Global comparable store sales increased 15 percent, as Americas gained 9 percent, while international comparable store sales rose 35%. Starbucks said it opened 5 net new stores globally, bringing total stores to 32,943 worldwide.

Looking forward to the full year 2021, Starbucks expects revenues of $28.5 billion to $29.3 billion, up from prior outlook of $28.0 billion to $29.0 billion. The company expects adjusted earnings of $2.90 to $3.00 per share, up from prior estimate of $2.70 to $2.90 per share. Analysts currently estimate earnings of $2.85 per share on revenues of $28.61 billion.

SBUX closed Tuesday's trading at $116.15, up $0.23 or 0.20%, on the Nasdaq. The stock, however, slipped to $2.22 or 1.91%, in the after-hours trade.