Starbucks Corp. (SBUX) reported fourth-quarter earnings after the close Thursday that beat expectations on both top and bottom lines.
Shares of the Seattle-based coffee giant rose more than 9% in post-market trading, after having ended the regular trading session up 0.62%.
Earnings came in at an adjusted 62 cents per share, beating Wall Street's estimates of 60 cents. Revenue was $6.3 billion, beating expectations of $6.27 billion. Net income was $755 million.
"Starbucks record Q4 performance reflected meaningful improvement in virtually every critical operating metric compared to Q3," said CEO Kevin Johnson. He added, "We are executing against a clear growth agenda, with a focus on our long-term growth markets of the U.S. and China."
Global comparable sales increased 3% for the quarter, but perhaps what was more impressive was the better-than-expected comparable stores increase in the U.S., a market some had assumed dead. Americas and U.s. comparable stores sales increased 4%, against an expected 2-3%. Sales in China, a region currently seen to be a promising growth engine increased 1% year-over-year, better than the -2% Starbucks saw in its July quarter. And the China sales figure beat Wall Street estimates of 0.2%
Starbucks guided for full year 2019 adjusted EPS of $2.61 to $2.66, but did say the global comparable sales growth for 2019 could come in at the lower end of current guidance. The global comparable sales guidance is for growth between 3% and 5%.
Starbucks shares are up 2.09% year-to-date.