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Starbucks Earnings Were Like an Ice Cold Frappuccino

Starbucks latest earnings report was strong. Here's what investors need to know about the quarter.
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Starbucks (SBUX) - Get Starbucks Corporation Report latest quarter was as freezing cold as a frap. 

The struggling coffee giant reported third fiscal quarter earnings of 62 cents a share, narrowly beating Wall Street forecasts for 61 cents a share. Investors looking for a bottom in the stock may want to think long and hard before pulling the trigger. 

Shares have plunged 10.7% year to date. Shares rose slightly Friday. 

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Starbucks Earnings Checklist: Negative

  • Fiscal year earnings guidance tapered to $2.40 a share to $2.42 a share. Previously, Starbucks was at $2.39 a share to $2.43 a share.
  • Operating profit margins down sharply in key segments Americas and China/Asia Pacific. 
  • Third fiscal quarter global same-store sales increased 1%, slowing from a 2% growth in the second quarter. 
  • Fourth fiscal same-store sales seen at the low end of long-term guidance for growth of 3% to 5%. 
  • Other: America's same-store sales up 1% (estimates: up 0.8%); China/Asia Pacific same-store sales down 1% (estimates: decline of 0.4%); EMEA same-store sales unchanged (estimates: down 0.7%). 

Here's what Amazon (AMZN) - Get Inc. Report had to say in its latest earnings report