Starbucks Shares Dip on Light Outlook

NEW YORK ( TheStreet) -- Shares of Starbucks ( SBUX) fell in Thursday's extended session after the coffee seller topped Wall Street's consensus view for its latest quarter but came up a bit short on its full-year guidance because of expected commodity cost pressures in the first half of 2012.

Seattle-based Starbucks reported fiscal first-quarter earnings of $382.1 million, or 50 cents a share, on revenue of $3.44 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 49 cents a share in the December-ended period on revenue of $3.29 billion.

The stock was last quoted at $47.80, down 1.1%, on after-hours volume of nearly 700,000.



The company's operating margins deteriorated across its businesses and geographies in the latest quarter, including a drop to 21.8% in the Americas from 22.6% in the same period a year earlier, a decline of 80 basis points.

For fiscal 2012, Starbucks forecast earnings of $1.78 to $1.82 a share, slightly below the current Wall Street consensus view for a profit of $1.83 a share. The company said it expects "unfavorable" commodity costs to impact results this year with the brunt of the impact coming in the first half of the year.

As a result, it sees earnings per share growth of 10% in the first half of 2012, and 25% in the second half.

The company's global same-store sales rose 9% in the latest quarter, and it opened 241 net new stores during the quarter. Starbucks also said that more than 100 million Starbucks- and Tazo-branded K-Cup packs were shipped in the first quarter since the product launch on Nov. 1. Green Mountain Coffee Roasters ( GMCR), which partners with Starbucks on the K-cup initiative, is slated to post its quarterly results on Feb. 1, and the average estimate of analysts polled by Thomson Reuters is for a profit of 36 cents a share on revenue of $1.06 billion for its fiscal first quarter.

Starbucks' shares have been riding high, up nearly 45% in the past year, and hitting a 52-week high of $48.39 last week. The stock closed Thursday's regular session at $48.34.

Of the 28 analysts covering the stock, 19 are bullish at either strong buy (8) or buy (11), and the median 12-month price target sitting at $51.

Check out TheStreet's quote page for Starbucks for year-to-date share performance, analyst ratings, earnings estimates and much more.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Dollar Tree CEO Calls It Quits, Joining List of Executive Departures This Year

These Powerful Corporate Executives Could Make a Run at the Presidency in 2020

The 10 Craziest Pumpkin Spice Items You Can Buy off Amazon

Sorry Elon Musk but Artificial Intelligence Grows Jobs: Domino's Pizza CEO

Cramer: Dominoes Are in Play Today