Friday, May 04, 2007 4:06:36 AM
SBUX 31-33-31 reports in line; reaffirms FY07 guidance (31.62 +0.37) : Reports Q2 (Mar) earnings of $0.19 per share, in line with the Reuters Estimates consensus of $0.19; revenues rose 19.6% year/year to $2.25 bln vs the $2.3 bln consensus. SBUX reports Q2 same store sales +4.0% vs +4.36 Briefing.com Benchmark consensus. Co reaffirms guidance for FY07, sees EPS of $0.87-0.89 vs. $0.89 consensus; reaffirms 20% rev growth, which equates to roughly $9.35 bln vs $9.53 bln Reuters consensus. Reaffirms plans to open approximately 2,400 new stores on a global basis in fiscal 2007. "During the second quarter, we demonstrated our ability to deliver solid performance and effectively manage our operations despite difficult comparisons and a more challenging cost environment this year. As a result, we recorded operating margin that was comparable to last year's record second-quarter performance while continuing to substantially expand our business."
Starbucks Conf Call Summary (31.62 ) -Update : Say they remain enthusiastic about their food warming program and plan to have an aggressive rollout(half of US stores by end of FY07). Talking about a major spring promotional campaign featuring drinks, food, and music from latin america. Opened 147 international stores. Co says "second-quarter results also demonstrated that we are still very much in a growth phase with this business, which requires substantial investment to build the foundation for the future." Saying growth is going as planned, they have plans for summer, fall, and holiday season in place and are waiting to execute on them. Saying growth will shift slowly towards international. Saying margins will come down as food revs continue to increase but that will come with increased profits. No plans to increase prices at this time. Co repurchased 14.3 mln shares in Q2 and board authorized 25 million more on april 1st(already known). Saying have achieved relevancy and success in 2 major Chinese cities and believe they will obtain a big payoff from chinese expansion going forward. Stock trading at $31.85
Starbucks Conf Call Summary (31.62 ) -Update : Say they remain enthusiastic about their food warming program and plan to have an aggressive rollout(half of US stores by end of FY07). Talking about a major spring promotional campaign featuring drinks, food, and music from latin america. Opened 147 international stores. Co says "second-quarter results also demonstrated that we are still very much in a growth phase with this business, which requires substantial investment to build the foundation for the future." Saying growth is going as planned, they have plans for summer, fall, and holiday season in place and are waiting to execute on them. Saying growth will shift slowly towards international. Saying margins will come down as food revs continue to increase but that will come with increased profits. No plans to increase prices at this time. Co repurchased 14.3 mln shares in Q2 and board authorized 25 million more on april 1st(already known). Saying have achieved relevancy and success in 2 major Chinese cities and believe they will obtain a big payoff from chinese expansion going forward. Stock trading at $31.85
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