Starbucks (NASDAQ:SBUX) would seemingly be up more than $0.50 in after-hours trading after reporting 10% same-store-sales (s-s-s) growth, but there are a couple things that have acted as the governor. You have to probably assume the company is giving itself some wiggle room and that they are being conservative so that management doesn't have to face charges of duping investors down the road in the Sarbanes-Oxley world we live in.
Here were the caveats they put out that may be acting as an offset to that strong 10% headline number (copied verbatim off their press release):
In addition to strong sales driven by new store openings, March revenue growth was positively impacted by the conversion of 67 stores in Hawaii and Puerto Rico to Company-operated status following the acquisition of those previously licensed markets in January, as well as the addition of two new stores in those markets during March," stated Michael Casey, Starbucks chief financial officer. "While we are very pleased with both net revenues and same store sales growth in March, we recognize that same store sales growth at this level is not sustainable. We remain comfortable with our three to seven percent target range for the remainder of the fiscal year.
This may create some minor estimates changes tomorrow and Monday since we now have what is the entire calendar-quarter. This is $1.866B on a translated basis (barring any rounding), which compares to $1.87B estimates ($1.83-$1.91B range). For the 26 weeks ended April 2, 2006, revenues were $3.8 billion, up 23% same 26-week period in fiscal 2005. Comparable store sales increased 8% for the 26 weeks ended April 2, 2006, as compared to the same 26-week period in fiscal 2005.
Take a look at the fundamental data below, and you probably won't be too shocked as to why management may be offering some conservative numbers:
After Hours (RT-ECN): 38.10 0.65 (1.74%)
Closing Trade: $37.45
Change: $0.04 (0.11%)
Prev Close: $37.49
52wk Range: $22.29 - $38.50
Avg Vol: 5,179,190
Market Cap: $28.59B
Forward P/E: 44.1