Starbucks Net Drops 97%

123jump.com Staff
11 Nov, 2008
New York City

Starbucks Corp fourth quarter revenue rose 3% to $2.5 billion and net income fell 97% to $5.4 million. Comparable domestic location sales fell 5% and across the system fell 3%. The company guided 2% decline in same stores sales in fiscal 2009.

[R]4:00PM New York - Houston Wire & Cable Company revenue fell 0.07% and net income fell 21%. Sempra Energy revenue rose 1.1% and net income rose 1%. Starbucks Corporation revenue rose 3% and net income fell 97%.[/R]

Chindex International, Inc, an independent American provider of Western healthcare products in China said second quarter revenues rose 17% to $38.1 million from $32.7 million a year ago. Net income in the quarter fell 47% to $0.9 million or 5 cents per diluted share compared to net income of $1.6 million or 13 cents per share, a year ago.

Chindex International, Inc ((CHDX)) in the last one year traded as high as $29.20 in February 2008 and as low as $6.53 in October 2008. Based on the yesterday’s closing price of $9.77 the company has a market cap of $138.94 million.

Houston Wire & Cable Company, one of the largest distributors of specialty wire and cable said third quarter revenues fell 0.07% to $98.85 million from $98.92 million a year ago. Net income in the quarter fell 21% to $6.58 million or 37 cents per diluted share compared to net income of $8.29 million or 41 cents per share, a year ago.

Houston Wire & Cable Company ((HWCC)) in the last one year traded as high as $22.74 in June 2008 and as low as $8.61 in October 2008. Based on the yesterday’s closing price of $11.25 the company has a market cap of $200.67 million.

Sempra Energy an energy services holding company said third quarter revenues rose 1.1% to $2.69 billion from $2.66 billion a year ago. Net income in the quarter rose 1% to $308 million or $1.24 per diluted share compared to net income of $305 million or $1.15 per share, a year ago.

Sempra Energy ((SRE)) in the last one year traded as high as $64.21 in December 2007 and as low as $34.29 in October 2008. Based on the yesterday’s closing price of $40.95 the company has a market cap of $10.09 billion.

Starbucks Corporation coffee house chain operator said fourth quarter revenues rose 3% to $2.5 billion from $2.4 billion a year ago. Net income in the quarter fell 97% to $5.4 million or 1 cent per diluted share compared to net income of $158.1 million or 21 cents per share, a year ago.

Comparable same store sales in the U.S fell 5% and international same store sales rose 2%. Across the chain the system wide sales fell 3%.

For fiscal 2008, consolidated net revenues increased 10% to $10.4 billion, compared to $9.4 billion for fiscal 2007. Company-operated retail revenues in fiscal 2008 rose 10 percent to $8.8 billion from $8.0 billion in fiscal 2007.

Specialty revenues grew 14% for the year to $1.6 billion from $1.4 billion in fiscal 2007. Operating income for fiscal 2008 decreased to $504 million, compared to $1.1 billion for fiscal 2007.

Operating margin contracted 630 basis points to 4.9% of total net revenues for the full year ended September 28, 2008, from 11.2% for the same period a year ago.

Net earnings totaled $315.5 million or 43 cents a share compared to $672.6 million or 87 cents a share in fiscal 2007. For the full year 2008, restructuring charges and other transformation costs lowered earnings by approximately $0.28 per share. Excluding these charges earnings were $0.71 per share.

For fiscal 2008, cash flow from operations was $1.3 billion, flat with fiscal 2007, while capital expenditures for fiscal 2008 declined to $985 million versus $1.1 billion for the previous year.

Majority of the restructuring charges in fiscal 2008 are related to closure of 600 stores in the U.S. and 61 locations in Australia.

For the fiscal 2009 the company estimates earnings per share of 78 cents and excluding restructuring charges of 12 cents estimates earnings of 90 cents a share. The charges include store closures in Australia and in the U.S. and estimates comparable store sales decline of only 2% for the year.

The earnings estimate also includes cost savings in the range of $200 million to $210 million or benefit of 17 cents to 18 cents a share.

Starbucks Corporation ((SBUX)) in the last one year traded as high as $24.40 in November 2007 and as low as $9.16 in October 2008. Based on the yesterday’s closing price of $9.92 the company has a market cap of $7.45 billion.