NEW YORK ( TheStreet) -- Shares of Starbucks (SBUX) fell in Thursday's extended session after the coffee seller topped Wall Street's consensus view for its latest quarter but came up a bit short on its full-year guidance because of expected commodity cost pressures in the first half of 2012.
Seattle-based Starbucks reported fiscal first-quarter earnings of $382.1 million, or 50 cents a share, on revenue of $3.44 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 49 cents a share in the December-ended period on revenue of $3.29 billion.
The stock was last quoted at $47.80, down 1.1%, on after-hours volume of nearly 700,000.
The company's operating margins deteriorated across its businesses and geographies in the latest quarter, including a drop to 21.8% in the Americas from 22.6% in the same period a year earlier, a decline of 80 basis points.For fiscal 2012, Starbucks forecast earnings of $1.78 to $1.82 a share, slightly below the current Wall Street consensus view for a profit of $1.83 a share. The company said it expects "unfavorable" commodity costs to impact results this year with the brunt of the impact coming in the first half of the year. As a result, it sees earnings per share growth of 10% in the first half of 2012, and 25% in the second half. The company's global same-store sales rose 9% in the latest quarter, and it opened 241 net new stores during the quarter. Starbucks also said that more than 100 million Starbucks- and Tazo-branded K-Cup packs were shipped in the first quarter since the product launch on Nov. 1. Green Mountain Coffee Roasters (GMCR), which partners with Starbucks on the K-cup initiative, is slated to post its quarterly results on Feb. 1, and the average estimate of analysts polled by Thomson Reuters is for a profit of 36 cents a share on revenue of $1.06 billion for its fiscal first quarter. Starbucks' shares have been riding high, up nearly 45% in the past year, and hitting a 52-week high of $48.39 last week. The stock closed Thursday's regular session at $48.34. Of the 28 analysts covering the stock, 19 are bullish at either strong buy (8) or buy (11), and the median 12-month price target sitting at $51. Check out TheStreet's quote page for Starbucks for year-to-date share performance, analyst ratings, earnings estimates and much more. -- Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV