Friday, November 4, 2011

Starbucks 4Q profit up 29 percent (AP)

SEATTLE ? Starbucks Corp.'s fiscal fourth-quarter profit jumped nearly 29 percent on stronger sales of its coffee in its cafes and at other retailers.

The company, based in Seattle, reported Thursday that it earned $358.5 million, or 47 cents per share. That's up from $278.9 million, or 37 cents per share, last year. After adjusting for one-time gains and an extra week in the prior quarter, the company earned 37 cents compared with 32 cents last year.

Revenue rose 7 percent to $3 billion, with some benefit from foreign exchange rates. Revenue jumped 15 percent after adjusting for the extra week last year.

The results beat Wall Street's expectations and shares jumped more than 3 percent in after-hours trading. Analysts polled by FactSet anticipated the company would earn 36 cents per share on revenue of $2.95 billion.

Starbucks has been a standout among its peers despite the tough economy as consumers have begun to afford themselves more small luxuries like a latte. The company also has expanded overseas and increased its presence in grocery stores and other retailers to help drive growth.

The company said it saw those trends continue in the fourth quarter.

Starbucks said revenue from its stores open at least a year, considered a key financial indicator as it strips away the impact of recently opened or closed stores, increased 9 percent during the period as customers came in more often and spent more.

This measure jumped 10 percent in the U.S. and 6 percent for its international business. Sales softened in the U.K. and Europe, where consumers have been hit the hardest by economic problems, but the company said that it sees growth ahead around the globe in its 2012 fiscal year.

"Starbucks today is executing in all markets and across all channels," Howard Schultz, CEO of Starbucks, said in a statement. "We have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond."

Starbucks said its full fiscal year net income jumped nearly 32 percent to $1.25 billion, or $1.62 per share. That's up from $945.6 million, or $1.24 per share, in the prior year. Starbucks earned $1.52 on an adjusted basis, versus $1.23 in the prior year.

Revenue increased 7 percent to $11.7 billion for the year.

Starbucks says it expects to earn $1.75 to $1.82 for the coming fiscal year on an adjusted basis with the bulk of the growth coming in the second half of the year as some costs for ingredients come down. Analysts expect $1.82 per share.

Shares of the company rose $1.40, more than 3 percent, to $42.58 in after-hours trading.

Source: http://us.rd.yahoo.com/dailynews/rss/earnings/*http%3A//news.yahoo.com/s/ap/20111103/ap_on_bi_ge/us_earns_starbucks

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