Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Starbucks (NASDAQ:SBUX) shares fell by more than 6% in premarket U.s. trading on Wednesday after the coffee house chain posted second-quarter results that fell short of analysts’ estimates as demand was stifled by weakening consumer sentiment.
For the three months ended March 30, Starbucks reported adjusted earnings per share of $0.41 on revenue of $8.76 billion. Analysts polled by Investing.com anticipated per-share earnings of $0.48 on revenue of $8.89 billion.
Comparable store sales fell 1%, wider than the 0.6% drop analysts had expected. North America comparable store sales declined 1%, in a potential sign that customers may be reining in spending on nonessential items against a murky economic backdrop.
Meanwhile, China comparable store sales were flat, with the latter pressured by a 4% decline in average ticket.
"[W]e expect a slower path to North America sales recovery with [...] data pointing to incrementally slowing brand momentum," analysts at Goldman Sachs said in a note to clients. The analysts downgraded their rating of the stock to "neutral" from "buy."
Still, the company touted progress on its "Back to Starbucks” turnaround strategy.
"My optimism has turned into confidence that our ’Back to Starbucks’ plan is the right strategy to turn the business around and to unlock opportunities ahead,” Brian Niccol, chairman and chief executive officer said on Tuesday.
(Yasin Ebrahim contributed reporting.)