Starbucks (SBUX) Stock Surges in After-Hours Trading on Q4 Results

NEW YORK (TheStreet) -- Shares of Starbucks  (SBUX) were advancing in after-hours trading on Thursday after reporting better-than-expected earnings and revenue for the 2016 fourth quarter.

After the market close, the Seattle-based beverage company reported adjusted earnings of 56 cents per share, topping analysts' estimates of 55 cents per share.

Revenue rose 16% year-over-year to $5.71 billion, while analysts were anticipating $5.69 billion.

Same-store sales rose 4.0% year-over-year. The FactSet consensus was for growth of 4.9%. 

For fiscal 2017, Starbucks expects to report adjusted revenue between $2.12 and $2.14 and double-digit revenue growth. Analysts surveyed by FactSet are modeling adjusted earnings of $2.16 per share. 

(Starbucks is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Starbucks' strengths such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: SBUX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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