5 Stocks Drawing Attention on Earnings Reports

4. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 58

Starbucks Corporation (NASDAQ:SBUX) recently posted better-than-expected sales for its fiscal first quarter. However, its adjusted profit missed expectations, sending its shares down nearly three percent in the pre-market trading session on Wednesday, January 2, 2022.

The Seattle-based coffee giant reported adjusted earnings of 72 cents per share, up 18 percent versus last year but below estimates of 80 cents per share. On the bright side, Starbucks Corporation (NASDAQ:SBUX) posted revenue of $8.1 billion, up 19 percent on a year-over-year basis and above analysts’ average estimate of $7.95 billion.

Global comparable store sales jumped 13 percent in the quarter. However, same-store sales declined by 14 percent in China, its second-largest market, due to mobility restrictions in several parts of the country. Among other updates, Starbucks Corporation (NASDAQ:SBUX) said that it opened 484 new stores during the quarter.

Looking forward, Starbucks Corporation (NASDAQ:SBUX) now expects its adjusted EPS to increase by 8 – 10 percent in its FY 2022, versus its previous forecast of at least 10 percent surge.

Speaking on the results, CEO Kevin Johnson said:

“As we enter the third year of this pandemic, our stores continue to play an important role as a community gathering place that offers safe, familiar and convenient experiences for our customers. Although demand was strong, this pandemic has not been linear, and the macro environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron and a tight labor market.”