A whirlwind is pushing Starbucks’ (SBUX, quote) stock around in today’s session after yesterday’s earnings report and followup conference call.
Starbucks knocked the cover off the ball when it came to fourth quarter profits – with 34% increase in customer traffic with a solid follow through in customer spending.
However, any perceived issues in high growth stocks can be punished harshly and Starbucks was no exception when management only reiterated its 2014 forecast of $2.55 to $2.65 despite beating 4 quarter earnings.
Analysts’ were looking for $2.67 on the year and this sent shares lower.
Starbucks started the pre-session under pressure pushing the stock around from $78.57 to $80.83 on volume of over 5.5 million.
Bottom Line: Starbucks appears to be conservative in its forecast and the dip very well could have been a awesome buying opportunity.
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