Starbucks Slides On Mixed Q1 Earnings, Mobile Order & Pay Up 3%

Starbucks Corp. (SBUX - Free Report) just released its first quarter fiscal 2017 financial results, posting non-GAAP earnings, before non-recurring items, of 52 cents per share and revenues of $5.7 billion. Currently, SBUX is a #3 (Hold) on the Zacks Rank, and is down 3.3% to $56.65 per share in trading shortly after its earnings report was released.

Matched earnings estimates. The company posted non-GAAP earnings of 52 cents per share, matching the Zacks Consensus Estimate of 52 cents per share. This number excludes a penny from non-recurring items.

Missed revenue estimate. The company saw revenue figures of $5.7 billion, lagging our consensus estimate of $5.830 billion but gaining 7% year-over-year.

Starbucks saw comparable store sales in China increase 6%, and up 3% globally and in the U.S. and throughout the Americas. The coffee giant reported record consolidated operating income of $1.1 billion, an increase of 7%, and record consolidated operating margin of 19.8%, expanding 10 basis points.

Mobile order and Pay represented 7% of U.S. company-operated transactions in Q1, up 3% from the prior year. Mobile Payment reached 27% of U.S. company-operated transactions.

Starbucks reiterated its full-year fiscal 2017 guidance, and continues to expect mid-single digit comparable store sales growth globally and non-GAAP EPS in the range of $2.12 to $2.14. Consolidated revenue growth is now expected to be in the range of 8% to 10%.

“We are pleased with the record Q1 financial and operating results we announced today, particularly given that the results were delivered in the face of a challenging environment for restaurant retailers overall,” said Scott Maw, CFO.

Here’s a graph that looks at Starbucks’ price, consensus, and EPS surprise:

Starbucks Corporation Price, Consensus and EPS Surprise

(Click on image to enlarge)

Starbucks Corporation Price, Consensus and EPS Surprise | Starbucks Corporation Quote

Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipment primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships.