Starbucks Misses on Sales, but the Stock Is Piping Hot Despite Snowy Winter: StockTwits

NEW YORK (TheStreet) -- SodaStream  (SODA) investors were disappointed by Starbucks' (SBUX) earnings call Thursday. But most Starbucks investors saw reasons for continued bullishness in the ubiquitous coffee shop's fiscal second quarter, judging from the comments on StockTwits.

$SBUX Love this stock and company but it really needs a catalyst to get moving. Great long term investment and good buying level IMO

-- Chemistweet (@Chemistweet) Apr. 25 at 02:19 AM

Starbucks reported earnings per share of 56 cents Thursday evening, meeting consensus estimates. Sales of $3.87 billion missed consensus expectations by about 2%, according to estimates on the Analyst Ratings Network.

$SBUX WS still loves this stock, so they forgive a lot. Probably wont sell off. We're lucky.

-- Rosalyn (@BeyondPale) Apr. 24 at 09:48 PM

Shares climbed more than 1.3% in after-hours trading. Investors said the 6% rise in comparable-store sales in the U.S. and North America was encouraging given that the cold, snowy weather had kept many customers away from other chains, such as Dunkin Donuts  (DNKN).

$SBUX I'm not the only one who drank more coffee during that long, cold winter.

-- Phralph Metz (@SecondLevel) Apr. 24 at 05:23 PM

Investors also focused on the company's margins. The company said operating margins improved in all segments. Sentiment on the stock stood at 68% bullish, according to StockTwits analytics.

Starbucks reaffirmed guidance. Management expects third-quarter EPS to fall between 64 cents and 66 cents. Starbucks anticipates that fourth-quarter EPS will fall between 71 cents and 75 cents. Analysts expect Starbucks' third-quarter EPS to fall on the high end of that guidance. They anticipate fourth-quarter EPS will hit the midpoint of the range, according to stats on Yahoo! Finance.

What Starbucks did not do was announce intentions to enter the at-home soda market with a purchase of Israel-based SodaStream. SodaStream and Starbucks investors have speculated about an acquisition since February, when Coca-Cola (KO) purchased a stake in Green Mountain Coffee Roasters (GMCR) with the intention of creating a cold, home-brewed drinks line.

The rumors were renewed earlier this month after an Israeli business newspaper said SodaStream is considering selling a stake in the company. Starbucks and PepsiCo (PEP) were named as a likely suitors. In an email, SodaStream declined to comment on the rumors.

$SBUX How many times will the rumor resurface before $SODA comes out with their earnings? Unless of course a deal happens #rumor

-- Delta Force (@DF_Options) Apr. 24 at 08:35 PM

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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