Earnings, Revenue Up at Starbucks

The coffee-store giant guides up for the fourth quarter.
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(SBUX) - Get Report

posted solidly higher earnings and revenue for its third quarter and said the performance will continue in the current period.

The coffee-store operator earned $68.4 million, or 17 cents a share, on revenue of $1.0 billion in the latest quarter, compared with earnings of $55.7 million, or 14 cents a share, on revenue of $835 million last year. Same-store sales rose 8%.

Starbucks said retail revenue increased 23.3% to $877.8 million, reflecting more stores and higher customer transactions.

For the fourth quarter, the company expects to earn 17 cents a share, a penny better than the analysts consensus, bringing full-year results to 67 cents a share.

The company currently expects that by the end of fiscal 2003, it will have opened 1,200 new stores, including 800 in North America. It expects revenue growth to exceed 20% for the year and same-store sales to be at the high end of a 3% to 7% range.

For 2004, the company expects to earn 83 cents to 85 cents a share on 20% revenue growth and 3% to 7% same-store sales growth. Starbucks intends to open another 1,300 new stores next year. Analysts polled by Thomson First Call were predicting earnings of 81 cents for fiscal 2004.

After closing at $26.39, the shares were recently down 44 cents, or 1.7%, in Instinet after-hours trading.