Tomahawk, WI 7/26/2013 (Basicsmedia) – Starbucks Corporation (NASDAQ:SBUX) is engaged in coffee and beverages business in 60 countries across the world. The Company sells roasted and handcrafted coffee, tea and other beverages along with a range of fresh eatables through its chain of Starbucks Cafes. Starbucks commenced a coffee roasting and packaging plant with Tata Coffee Ltd in February 2013 in Karnataka, India, and is now planning to launch Starbucks branded coffee machines.

On Thursday, July 25, 2013, Starbucks declared its results for 3Q2013 after the closing of the market. The stock, which had gained 2.34% to close the day at $68.17, rose to $72.10, up by 5.77% in the after trading hours as a result of over-whelming results which beat all Wall Street estimates.

The Company declared its net revenues at $3.7 billion, showing an increase of 13% over last year, with consolidated income from operations increasing 25% over last year to $615.2 million. The operating margin was up by 150 basis points to 16.4%. Starbucks recorded growth in its brand store sales across all the regions, opening 341 new stores in the quarter. The earnings per share were up by 28% over the same period last year to $0.55 per share, the second highest ever in the Company’s history. Starbucks now has the credit of beating market expectations seven times in its last eight quarterly results.

The stock is currently trading at its all time high, already up 31.2% in last one year and 20% in last six months. Overwhelmed by its 3Q2013 results, the Company revised its 4Q2013 estimates to $0.59-$0.6 EPS and full year EPS for fiscal 2013 at $2.22- $2.23, up from its previous estimates of $2.12 to $2.18 per share.

Starbucks also announced its target for fiscal 2014, expecting a growth in revenue between 10 to 13% with addition of 1400 new stores in the year, out of which 600 stores will come up in Americas alone. The Company is also eyeing an improvement in operating margin by 150 to 200 basis points over the present year, estimating EPS between $2.55 to 2.65, an increase of 18% to 22% over present year.

The company has plans to expand its business by adopting more packaged and food products. Starbucks has tied up with Danone SA to provide yogurt and other fresh dairy products from its counters. The company has also started other ventures including energy drinks and coffee brewing machines, in addition to its latest acquisition of loose-leaf tea retailer Teavana at a cost of $620 million. Starbucks is expected to launch the Tazo tea concepts store later this year, under the Teavana brand, with plans to later include its handcrafted tea beverages in Starbucks menu. The Company is hopeful of issuing additional long term debt of $750 million over the next quarter seeking financial flexibility for its operations and expansion plans.

The stock, on Thursday, July 25, 2013, traded in the range of $66.73 and $68.3 with 8.05 million shares exchanging hands, which is almost double the average trading volume of its shares for last 90 days.

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