Starbucks earnings beat, fueled by strong U.S. cold beverage sales, but its shares drop on weak China outlook

Posted by Amelia Lucas,

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Starbucks on Tuesday reported soaring cold drink sales in the United States, fueling an earnings and revenue beat for the company.

But the coffee chain also warned of a slower recovery in China, its second-largest market. It lowered its full-year forecast for the country’s same-store sales growth, despite raising its overall outlook for fiscal 2021 earnings per share.

The stock fell about 3% in extended trading after hitting a 52-week high before the markets closed.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $1.01 adjusted vs. 78 cents expected
Revenue: $7.5 billion vs. $7.29 billion expected
The coffee giant reported fiscal third-quarter net income of $1.15 billion, or 97 cents per share, up from a net loss of $678.4 million, or 58 cents per share a year earlier…read more.