Starbucks Corporation (NASDAQ:SBUX) had an underwhelming quarter to kick off its new fiscal year that saw earnings impress but revenue miss the mark.
The coffee chain unveiled net incomes of $2.25 billion, or $1.57 per share, topping the year-ago income of $751.8 million, or 51 cents per share during its first quarter of fiscal 2018. On an adjusted basis, Starbucks earned 58 cents per share, a penny better than analysts’ expectations, according to Thomson Reuters.
The company did enjoy a benefit of seven cents per share thanks to the changes in the U.S. tax law. Revenue came in at $6.07 billion, below the $6.18 billion that analysts polled by Thomson Reuters were calling for.
Same-store sales disappointed greatly for Starbucks as the company was expecting a global growth in this category of 3% year-over-year, according to data compiled by StreetAccount. However, same-store sales were only 2% better than a year ago.
The company updated its guidance for the current year, noting that earnings for the full year are slated to be in the range of $3.32 to $3.36 per share, ahead of its previous range of $2.48 to $2.53 per share, thanks in part to a benefit from the new tax reform.
Starbucks also said that investors can expect its annual global same-store sales to be in the range of 3% to 5%, while its annual consolidated net revenue is slated to rise in the high-single digits.
SBUX shares lost 3.1% after the bell Thursday afternoon.
