Starbucks Corp (NASDAQ:SBUX) is trading lower Wednesday morning after the company announced worse-than-expected fiscal first-quarter earnings results.
Starbucks reported quarterly earnings of 72 cents per share, which came in below the estimate of 80 cents. The company reported quarterly revenue of $8.1 billion, which beat the estimate of $7.97 billion.
"Although demand was strong, this pandemic has not been linear and the macro environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to omicron and a tight labor market," said Kevin Johnson, president and CEO of Starbucks.
"Starbucks will continue to proactively address the industry challenges and operating environment while maintaining our focus on Starbucks partners and customers," Johnson added.
During the company's conference call, Starbucks said it expects 2022 revenue to be in the range of $32.5 billion to $33 billion. The company also said it anticipates over 200 basis points of incremental margin pressure in 2022.
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Analyst Assessment: Multiple analyst firms weighed in on the stock following Starbucks' quarterly results:
- Cowen & Co. analyst Andrew Charles maintained Starbucks with an Outperform rating and lowered the price target from $125 to $115.
- Goldman Sachs analyst Jared Garber downgraded Starbucks from a Buy rating to a Neutral rating and lowered the price target from $112 to $106.
- Wedbush analyst Nick Setyan maintained Starbucks with an Outperform rating and lowered the price target from $110 to $106.
SBUX Price Action: Starbucks has traded as low as $93.79 and as high as $126.32 over a 52-week period.
The stock was down 2.81% at $95.98 at time of publication.
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