Starbucks Q3 Profit Tops Estimates; Increases FY15 Outlook - Quick Facts

(RTTNews) - Starbucks Corporation (SBUX) reported third quarter net earnings attributable to company of $626.7 million compared to $512.6 million, a year ago. Earnings per share was $0.41 compared to $0.34. The company noted that its third-quarter GAAP results include Starbucks Japan acquisition-related items. Non-GAAP earnings per share was $0.42, for the quarter.

On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $0.41 for the quarter. Analysts' estimates typically exclude special items.

Consolidated net revenues were $4.88 billion, an increase of 17.5% over last year. The company said the increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan, a 7% increase in global comparable store sales and the opening of 1,592 net new stores over the past 12 months. Analysts expected revenue of $4.86 billion for the quarter.

Starbucks continues to expect full year revenue growth of 16% to 18%. Global comparable store sales growth remains in the mid-single digits. GAAP earnings per share is now expected to be in the range of $1.77 to $1.78. Starbucks now expects non-GAAP earnings per share in the range of $1.57 to $1.58. Analysts expect the company to report earnings per share of $1.57.

Starbucks now expects fourth quarter EPS in the range of $0.38 to $0.39. The company continues to expect fourth quarter non-GAAP EPS in the range of $0.42 to $0.43. Analysts expect the company to report earnings per share of $0.43.

Separately, Starbucks and PepsiCo, Inc. announced they have entered into an agreement for the marketing, sales and distribution of a locally-relevant portfolio of Starbucks ready-to-drink coffee and energy products in Latin America.

Starbucks also announced that its Board has authorized the repurchase of an additional 50 million shares of the company's common stock under its ongoing share repurchase program. This authorization has no expiration date and is in addition to the 11 million shares that remained available for repurchase as of June 28, 2015 under an existing authorization. The Board of Directors declared a cash dividend of $0.16 per share, payable on August 21, 2015 to shareholders of record as of August 6, 2015.