Investor Alert

Market Pulse Archives

April 8, 2020, 6:37 p.m. EDT

Starbucks says earnings cut roughly in half due to coronavirus effects

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Starbucks Corp. (SBUX)

or Cancel Already have a watchlist? Log In

By Jeremy C. Owens


Starbucks Corp. /zigman2/quotes/207508890/composite SBUX -0.13% said Wednesday that fiscal second-quarter earnings will be chopped roughly in half from a year ago due to the spread of COVID-19 in China and then the U.S. Starbucks revealed that it expects adjusted earnings of 28 cents to 32 cents a share for the second quarter, which would be down from 60 cents a share in the second quarter of 2019. "These estimates reflect the impact of lost sales for the period as well as incremental expenses for partner wages and benefits, store operations and other activities related to the COVID-19 outbreak," the company disclosed. "This includes inventory write-offs, honoring supplier obligations, store safety-related items, asset impairments and preliminary estimates of certain government stimulus program benefits." Analysts on average expect earnings of 39 cents a share, down from 66 cents a share at the end of 2019, according to FactSet. The company also rescinded its annual guidance. Starbucks shares fell 1% in after-hours trading immediately following the release of the information. Starbucks expects to report second-quarter earnings in full on April 28.

US : U.S.: Nasdaq
$ 96.88
-0.13 -0.13%
Volume: 4.80M
Nov. 23, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$113.86 billion
Rev. per Employee

Get news alerts on Starbucks Corp. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.