Starbucks (NASDAQ:SBUX) announced earnings Thursday that fell short of Wall Street’s expectations, causing an 8.5% drop in SBUX stock after hours. The drubbing continued Friday morning as investors pushed the shares down more than 10%.
The company said its fiscal third-quarter net income rose to $333.1 million, or 43 cents per share, up 19% from $271.9 million, or 36 cents a share a year ago. Revenue increased 13% to $3.3 billion. However, Starbucks failed to meet the predictions of analysts, who had estimated results of 45 cents per share on $3.33 billion in revenue.
Despite this quarter’s growth — a result of increased sales in every market except Europe, including a 12% jump in Asia — Starbucks also announced that it was lowering its projections for the fourth quarter. Last month, the company had predicted earnings of 46 cents to 47 cents, but now it expects to earn from 44 cents to 45 cents.
– Ryan Hauck, InvestorPlace