NEW YORK (TheStreet) -- Starbucks (SBUX) ticked upward 1% in after-hours trading on Thursday after the company reported second-quarter results that included better-than-expected comparable-store sales growth.
The coffee giant noted worldwide comparable-store sales rose 6%, which beat the 5.4% consensus estimate from analysts polled by Thomson Reuters.
Profit was $427 million, or 56 cents a share, up from $390.4 million, or 51 cents a share, in the same period one year earlier. Starbucks said in January it expected earnings per share of 54 cents to 55 cents, which was slightly less than analysts' estimates at that time.
Net revenue for the quarter increased to $3.87 billion, versus the consensus estimate of $3.95 billion.
Starbucks also increased its earnings outlook for the full year to a range of $2.62 to $2.68 on revenue growth of at least 10%. The company had previously increased its earnings outlook in January to a range of $2.59 to $2.67 and reiterated its outlook for at least 10% revenue growth and worldwide comparable-store sales growth in the mid-single digits.
Separately, TheStreet Ratings team rates STARBUCKS CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."