Starbucks Corporation (NASDAQ:SBUX) released its earnings report for the first three months of 2013 this afternoon, Thursday April 25, after the market closed. The company showed earnings per share of $0.48 for the first quarter for the year, which Starbucks counts as its second fiscal quarter, on revenues totaling $3.56 billion. On today’s market the firm’s stock trended up, closing at $60.50 per share.


Before the earnings report was released, analysts were looking for earnings of 48 cents per share from the company on revenues totaling $3.6 billion. The company earned 40 cents per share in the same three months of 2012, on revenues totaling $3.2 billion. In the hours leading up to the earnings announcement, whisper numbers indicated that the company would beat analysts’ estimates by a cent.

Starbucks Corporation (NASDAQ:SBUX) recently announced that it was planning to cut the price of the coffee it sells in grocery stores by a minimum of 10% in May. The change may indicate a wish on the part of the company to boost sales, and improve the reach of its brand as it tries to move into the hardware business.

One of the most important indicators for Starbucks Corporation (NASDAQ:SBUX) heading into the rest of 2013 are the performance of the US market, which is still by far the most important for the coffee seller. As the US economy improves Starbucks would be expected to make more sales.

Another important indicator is innovation. Quite apart from its hardware business, one of the factors that has driven growth at Starbucks Corporation (NASDAQ:SBUX) is the way in which the company serves coffee drinks. The constant barrage of new flavors and styles entices the market, particularly young people, to try the company’s products.

Starbucks Corporation (NASDAQ:SBUX) currently trades at a P/E of around 32, based on 2012 earnings. That number implies a high level of growth for the company in the future, and investors seem confident the company can deliver.

So far in 2013, Starbucks Corporation (NASDAQ:SBUX) shares have performed relatively well. Since the start of January, the firms’ stock has increased by more than 12%, beating the Nasdaq gains of just under 9%. In the last year however, the company’s stock hasn’t really shined. For the last twelve months, the stock is up a fraction less than 2%, after losses in the middle of last year after poor earnings were reported.