<p>Starbucks (NASDAQ: SBUX) earnings for the second quarter of 2020 have SBUX shares lower after closed markets on Tuesday. This comes after reporting adjusted earnings per share of 32 cents, which is below Wall Street‘s estimate of 34 cents. On the other hand, the coffee chain’s revenue of $ 6 billion is better than analysts’ estimates of $ 5.89 billion.
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Let’s take a closer look at Starbucks’ earnings report below.
Adjusted earnings per share decreased by 46.7% from 60 cents in the same period the year before. Revenue for the quarter was 4.9% lower than the $ 6.31 billion reported in the second quarter of 2019. Operating profit of $ 487.4 million is a decrease of 43.2% compared to the previous year from $ 857.7 million. Starbucks’ earnings report also has net income of $ 324.8 million. That is a decrease of 50.7% compared to its net profit of $ 658.8 million reported during the same period last year.
Kevin Johnson, President and CEO of Starbucks, said this in the second quarter results report:
“We are using our experience in China to inform our actions in other markets, including the United States, where we are now entering the ‘monitor and adapt’ phase to reopen many more stores with the best security protocols. We continue to navigate this dynamic situation – which we believe is temporary – and are convinced that Starbucks will emerge even stronger from this global crisis than before. “
Starbucks still does not offer guidance for the full year 2020. The company withdrew its guidance earlier this month in response to the new coronavirus. It is unclear when it will provide an updated forecast for the year.
SBUX shares fell 2.1% after Tuesday.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/04/starbucks-earnings-q2-drop-sbux-stock/.
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