Starbucks Corporation Beats Analysts’ Earnings Views; Posts 37% EPS Increase; Raises Dividend (SBUX)

After the bell on Wednesday, Starbucks (SBUX) announced its fourth quarter earnings, beating analysts’ EPS estimates, and raised its quarterly dividend 24%.

SBUX Earnings in Brief

-Starbucks reported revenues of $3.8 billion, which were up 13%.
-Operating income for the quarter came in at $668.9 million, a 29% increase from last year’s Q4 figure of $519.6 million.
-EPS was reported at 63 cents, up 37% from last year’s Q4 EPS of 46 cents.
-The company beat analysts’ EPS estimates of 60 cents per share, but came slightly under the revenue estimate of $3.81 billion.
-Starbucks announced earnings guidance for 2014 of $2.55-$2.65 per share, which is slightly below analysts’ views of $2.67.

CEO Commentary

Chairman, president and CEO of Starbucks, Howard Schultz, had the following to say about the company’s impressive earnings: "The fourth quarter of fiscal 2013 capped off by far the best year in Starbucks 42-year-history. Our results were driven by disciplined, ongoing efforts to elevate the value and relevance of the Starbucks brand, continued innovation and the success of our efforts to deepen our connection to customers and communities around the world."

Dividend Raise

Starbucks announced a quarterly cash dividend of 26 cents per share, which is a 24% increase from its previous quarterly payout of 21 cents. The dividend is payable on November 29 to all shareholders on record as of November 14.

Stock Performance

Though Starbucks stock was up $1.21, or 1.52%, on the day, it was dropping lower in after hours trading. YTD, the stock is up nearly 45%.