This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Starbucks Misses on Sales, but the Stock Is Piping Hot Despite Snowy Winter: StockTwits

NEW YORK (TheStreet) -- SodaStream  (SODA) investors were disappointed by Starbucks' (SBUX - Get Report) earnings call Thursday. But most Starbucks investors saw reasons for continued bullishness in the ubiquitous coffee shop's fiscal second quarter, judging from the comments on StockTwits.

$SBUX Love this stock and company but it really needs a catalyst to get moving. Great long term investment and good buying level IMO -- Chemistweet (@Chemistweet) Apr. 25 at 02:19 AM

Starbucks reported earnings per share of 56 cents Thursday evening, meeting consensus estimates. Sales of $3.87 billion missed consensus expectations by about 2%, according to estimates on the Analyst Ratings Network.

$SBUX WS still loves this stock, so they forgive a lot. Probably wont sell off. We're lucky. -- Rosalyn (@BeyondPale) Apr. 24 at 09:48 PM

Shares climbed more than 1.3% in after-hours trading. Investors said the 6% rise in comparable-store sales in the U.S. and North America was encouraging given that the cold, snowy weather had kept many customers away from other chains, such as Dunkin Donuts  (DNKN).

$SBUX I'm not the only one who drank more coffee during that long, cold winter. -- Phralph Metz (@SecondLevel) Apr. 24 at 05:23 PM

Investors also focused on the company's margins. The company said operating margins improved in all segments. Sentiment on the stock stood at 68% bullish, according to StockTwits analytics.

Starbucks reaffirmed guidance. Management expects third-quarter EPS to fall between 64 cents and 66 cents. Starbucks anticipates that fourth-quarter EPS will fall between 71 cents and 75 cents. Analysts expect Starbucks' third-quarter EPS to fall on the high end of that guidance. They anticipate fourth-quarter EPS will hit the midpoint of the range, according to stats on Yahoo! Finance.

What Starbucks did not do was announce intentions to enter the at-home soda market with a purchase of Israel-based SodaStream. SodaStream and Starbucks investors have speculated about an acquisition since February, when Coca-Cola (KO) purchased a stake in Green Mountain Coffee Roasters (GMCR) with the intention of creating a cold, home-brewed drinks line.

The rumors were renewed earlier this month after an Israeli business newspaper said SodaStream is considering selling a stake in the company. Starbucks and PepsiCo (PEP) were named as a likely suitors. In an email, SodaStream declined to comment on the rumors.

$SBUX How many times will the rumor resurface before $SODA comes out with their earnings? Unless of course a deal happens #rumor -- Delta Force (@DF_Options) Apr. 24 at 08:35 PM

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SBUX $47.62 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs