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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.

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