Starbucks Corp. (SBUX) - Get Starbucks Corporation Report reported better-than-expected fiscal third-quarter results Tuesday and said it expects Covid-19 impacts on its business to "moderate meaningfully" in the fourth quarter.
The coffee giant posted an adjusted loss per share of 46 cents a share on revenue of $4.2 billion.
Starbucks had been expected to report a loss of $670.8 million, or 59 cents a share, on sales of $4.1 billion, based on a FactSet survey of 31 analysts.
Last month, Starbucks said the coronavirus pandemic would slash revenue by $3 billion to $3.2 billion for the fiscal third quarter.
In the same period a year ago. the company posted earnings of 78 cents a share on sales of $6.8 billion. It reported net income of $663.2 million.
Starbucks said same-store sales fell 40%.
Shares rose $2.08, or 2.79%, to $76.72 in after-hours trading.
Wells Fargo analyst Jon Tower recently said the company can overcome the scourge of the coronavirus pandemic, which has kept customers away.
"Investors currently underappreciate the pliability of Starbucks's business model and sustainability of long-term sales drivers in the presence of temporary disruptions of the business related to covid-19," he wrote in a commentary cited by Dow Jones.
Starbucks is a holding in Jim Cramer's Action Alerts PLUS member club.
In the upcoming quarter analysts are forecasting adjusted net income of $324.6 million, or 27 cents a share, on sales of $5.9 billion.
For the year, analysts project revenue of $23.1 billion.