Starbucks Corporation (NASDAQ:SBUX) publicly declared its earnings for the three months closing June 30 this afternoon after the markets closed on Wall Street. The company showed earnings of 55 cents per share for the period on revenue totaling $3.74 billion. In the stock market today there was a strong upward trend in Starbucks Corporation (NASDAQ:SBUX) shares, which finished the day at $68.17.
In the run up to the announcement of this earnings report, analysts following Starbucks Corporation (NASDAQ:SBUX) were looking for earnings of 53 cents per share for the three months. Revenues for the reported period were expected to come to $3.72 billion. In the same three months of 2012, Starbucks Corporation (NASDAQ:SBUX) earned 43 cents per share on revenue of $3.3 billion.
Starbucks diversification
Starbucks Corporation (NASDAQ:SBUX) is making an honest effort to diversify its business away from its iconic chain of cafes. In the last year or two, the company has been doing its best to leverage its brand in order to popularize retail products, with the most recent addition being the company’s future line of yogurts.
The Starbucks brand is a powerful one and the company may be able to leverage it in order to sell more retail food products. The company is also pushing its own branded coffee machine, in direct competition with the popular Keurig brand. The process is a self fulfilling one. If the Starbucks brand is strong enough to get customers buying the company’s products, customers are more likely to bring more of the products into their homes.
Shares in the coffee maker have risen by more than 26% since the year began. Investors have a lot of faith in Starbucks Corporation (NASDAQ:SBUX). The company is trading at more than thirty times earnings, and expectations keep growing. Starbucks executives will host a conference call at 5 pm to discus this afternoon’s earnings report.
